Microsoft on Course to Spend $100 Billion on AI and GPUs by 2027: One Journalist’s Look Inside the Company’s Quest for Generative AI

Microsoft has set a target to acquire 1.8 million AI chips by the end of 2024, as per a document reviewed by Business Insider. The company’s focus is on improving the speed, efficiency, and affordability of generative AI, with a heavy reliance on purchasing GPUs from Nvidia. Microsoft is currently on track to triple the number of GPUs it has in stock by 2024, with plans underway for collaboration with OpenAI.

The cost of remaining competitive in the generative AI space is high, with Microsoft projecting $100 billion in future spending on GPUs and data centers from the current fiscal year until 2027. Despite this significant investment, Microsoft declined to comment on these details during its quiet period before reporting earnings.

Other major tech companies are also investing heavily in GPUs, contributing to Nvidia’s impressive market capitalization of over $2 trillion. Meta’s CEO has announced plans to purchase hundreds of thousands of Nvidia H100 GPUs in 2024. Meanwhile, Nvidia continues to innovate with its latest GPU, the Blackwell, along with its powerful H100s already available on the market.

However, some Microsoft employees express skepticism about the company’s ability to reduce its dependence on Nvidia by internally designing AI chips due to lagging behind in this area. With rapid advancements in AI technology, staying competitive requires continuous innovation and investment.

Business Insider invites employees and insiders with valuable insights into Microsoft’s plans for AI development to contribute their perspectives through Ashley Stewart via email or secure message for further discussion.