The AI boom is triggering an AI server chip crunch, according to a report by The Information.
Major cloud providers such as AWS and Google Cloud are witnessing
skyrocketing demand for AI servers and are now forced to restrict their
availability, according to the publication.
- The shortage of server chips that can train and run AI software is also affecting smaller providers.
- Some customers told The Information that they are experiencing wait times of many months to rent the AI servers.
- The shortage is hampering efforts by developers to create their large language models and other AI tools and software.
- "It
is literally not possible to get access" to AI servers "unless you have
some existing contract with [major cloud providers] or you're
pre-paying for it," Root Ventures' engineer-in-residence Yasyf
Mohamedali told The Information.
- Wedbush
Securities analyst Matt Bryson said a failure by cloud providers to
foresee demand amid the AI hype caused them to not order enough chips
during a cutback on cloud-spending growth.
- Nvidia is now shipping its latest AI GPUs to customers, which could help alleviate the problem.
