The current AI craze brought on by the release of OpenAI’s ChatGPT has led to a surge in demand for server chips used to train and run ML software resulting in a shortage. Thus,
major cloud service providers like Amazon Web Services (AWS),
Microsoft, Google, and Oracle have limited the number of server chips
customers can rent.
- The
ongoing server chip shortage has dealt a blow to startups and software
developers looking to capitalize on the AI boom and integrate AI tools
into their products and services.
- Yasyf
Mohamedali, an engineer-in-residence at venture capital firm Root
Ventures, stated that accessing AI servers “is literally not
possible…unless you have some existing contract with major cloud
providers or you’re pre-paying for it.”
- Nvidia,
a major player in developing GPUs needed to develop AI software, has
been distributing its latest line of GPUs to cloud providers.
- One
reason for the crunch was that many cloud companies had opted to scale
back on building new servers due to a trend towards overall reduced
spending for cloud products and services.
