The deployment of 24,000 chips should be completed by February 2024.
Voltage Park, a non-profit organization founded by billionaire Jed McCaleb, has acquired approximately 24,000 Nvidia H100 chips for approximately $500 million. According to The Business Times, the organization is planning to lease AI computing power at a low cost to overcome the shortage of these chips.
Eric Park, CEO of Voltage, where did it go,
“The current ecosystem for machine learning is fundamentally flawed.”
Therefore, the organization aims to install the new chips in its facilities in Texas, Virginia, and Washington. The deployment of 24,000 chips is to be completed by February 2024 to meet the growing demand for AI chips following the successful launch of OpenAI’s ChatGPT, which has revolutionized the field of AI.
NVIDIA shares surge more than 200% amid AI boom
nvidia corporation NVDA (NASDAQ:NVDA) is a company dedicated to designing and manufacturing graphics processors (GPUs) for computers, chipsets, and software for specialized markets such as gaming and artificial intelligence.
In 2023, Nvidia has been one of the top performing companies of the year, due to its substantial investments in AI-focused chip development. This has led it to become one of the leading companies in the AI market.
In the past year, shares of NVIDIA (NVDA) have surged an impressive 212%, rising from $135 to the current price of $406.31. The surge peaked on August 30, when it hit an all-time high of $493.55 due to increased demand for its AI chips due to the popularity of AI models like ChatGPT and Cloud.
NVDA price. Photo: Trading View
According to business InsiderSources close to Nvidia have reported that the company expects to triple its production of H100 chips by 2024, manufacturing between 1.5 to 2 million units compared to 500,000 produced in 2023.
Tech giants are betting big on the AI race
Microsoft, Amazon and Google are among the tech giants that are investing extensively in AI development. On October 24, Microsoft Corp. (NASDAQ: MSFT) announced A $5 billion Australian dollar (US$3.2 billion) investment to strengthen the artificial intelligence sector in Australia. Earlier, Google had announced a $1 billion investment in partnership with the Australian government.
These investments come in a context where the regulatory landscape for AI, similar to that of cryptocurrencies in the United States, is creating uncertainty among investors. Some experts suggest that unclear or overly strict regulations in the US are pushing AI developers to seek opportunities in more tech and regulator-friendly countries.
Similarly, retail giant Amazon recently introduced a new generative AI feature called “Explore with Alexa”, which is designed to provide “trusted” and personalized answers to children’s questions, thereby Adults are growing more confident in the face of AI risks.
Although AI is in its infancy, the risks associated with it have given rise to many discussions related to user security and privacy. Nevertheless, as this narrative unfolds, it is highly likely that we will see tech giants using their enthusiasm and substantial financial resources to satisfy the appetite for this unprecedented technology.
Marco is a passionate journalist with a deep addiction to cryptocurrency and a keen interest in photography. He is interested in business and market analysis. He has 5+ years of experience working with cryptocurrency projects.
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