AI chip giant Nvidia and tech major Microsoft were locked in a fight for months over the former’s tight control over how chips are allocated and installed. The issue, aimed at checking supply to prevent the stockpiling of chips at companies, led to tensions between Nvidia and Microsoft. According to The Information, the issue was finally resolved after Microsoft CEO Satya Nadella’s intervention.
What’s the Issue?
Nvidia CEO Jensen Huang has earlier said that the company control how chips are allocated so as to prevent tech giants from stockpiling them during the periods of limited supply.
According to the report, Nvidia was also attempting to install the chips in the data centres itself while focussing on the server rack configuration. This could have affected Microsoft’s ability to switch to different AI chips.
Nvidia also did not like how Microsoft utilised the purchased hardware after which the disagreement escalated into a feud as Nvidia tried to convince Microsoft to adopt its next flagship chip GB200 within the server rack design specified by Jensen Huang’s Nvidia.
Satya Nadella’s Intervention: How Was the Issue Resolved?
According to The Information, the fued between Microsoft and Nvidia was resolved as after several weeks, Microsoft CEO Satya Nadella stepped in. Nadella made Nvidia to back down on Microsoft’s demands.
According to the report, Jensen Huang has since been worried about whether companies like Microsoft and Amazon Web Services are going to run out of data centre space, which would mean a dearth of space will lead to less sales of AI chips.
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