"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 trillion and $4 trillion will be spent on AI infrastructure by the end of the decade - with much of that money coming from AI companies."
"This is arguably the deal that kicked off the whole contemporary AI boom: In 2019, Microsoft made a $1 billion investment in a buzzy non-profit called OpenAI, known mostly for its association with Elon Musk. 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."
AI product development requires extensive computing power, driving a parallel race to build supporting infrastructure. Between $3 trillion and $4 trillion is expected to be spent on AI infrastructure by the end of the decade, with much of the spending coming from AI companies. The surge in training and deployment demands is straining power grids and pushing building capacity to its limits. Microsoft’s early investment in OpenAI began as $1 billion in 2019 and evolved into substantial Azure cloud credits and additional investment approaching $14 billion. OpenAI ended cloud exclusivity with Microsoft, keeping a right of first refusal while seeking other providers.
Read at TechCrunch
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