"It takes a lot of computing power to run an AI product - and as the tech industry races to tap the power of AI models, there's a parallel race underway to build the infrastructure that will power them. On a recent earnings call, Nvidia CEO Jensen Huang estimated that between $3 and $4 trillion will be spent on AI infrastructure by the end of the decade - with much of that money coming from AI companies themselves."
"Crucially, the deal made Microsoft the exclusive cloud provider for OpenAI - and as the demands of model-training became more intense, more of Microsoft's investment started to come in the form of Azure cloud credit rather than cash. It was a great deal for both sides: Microsoft was able to claim more Azure sales, and OpenAI got more money for its biggest single expense."
AI products require massive computing power and a parallel industry is emerging to build the needed infrastructure. Nvidia CEO Jensen Huang estimated $3–4 trillion will be spent on AI infrastructure by the end of the decade, with much of the spending coming from AI companies. Rapid demand is straining power grids and pushing data-center building capacity to limits. Major corporate projects and investments are underway from Microsoft, OpenAI, Google, Meta, and Oracle. Microsoft invested $1 billion in OpenAI in 2019 and later increased investments to nearly $14 billion, often providing Azure cloud credits. OpenAI ended exclusive Azure use and now gives Microsoft right of first refusal while exploring other providers.
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