Microsoft warns of service disruptions if it can’t get enough A.I. chips for its data centers
Publishing timestamp: 2023-07-28 12:47:59
Summary
Microsoft has updated its risk factor in its annual report to emphasize the importance of securing graphics processing units (GPUs) for its data centers. The company is ramping up capital expenditures, including for GPUs, to meet the rising demand for cloud-based artificial intelligence services. The language in the report reflects the growing demand for hardware necessary for AI capabilities. Microsoft's partnership with OpenAI and the popularity of OpenAI's ChatGPT chatbot have led to increased interest in GPUs. Microsoft is seeking more GPUs than expected and has signed an agreement with CoreWeave to secure additional capacity. The company is also developing its own custom AI processor. Other large technology companies have not mentioned GPUs in their recent annual reports. Microsoft expects to increase its capital expenditures to support its data centers and acquire GPUs.
Sentiment: NEUTRAL
Tickers: GOOGL, AMZN, AMD, AAPL, META, MSFT, NVDA,
Keywords: amazon.com inc, alphabet inc, nvidia corp, business news, technology, apple inc, microsoft corp, business, advanced micro devices inc, enterprise, meta platforms inc, breaking news: technology,
Source: https://www.cnbc.com/2023/07/28/microsoft-annual-report-highlights-importance-of-gpus.html