Microsoft and Nvidia had been embroiled in a months-long dispute over AI chip design, with tensions rising due to Nvidia’s control over chip allocation and installation. Nvidia CEO Jensen Huang’s tight control over how chips are allocated to prevent stockpiling during supply shortages led to a clash with Microsoft, a major customer. The disagreement escalated when Nvidia tried to convince Microsoft to adopt its upcoming GB200 flagship chip in a specific server rack design. This could have impacted Microsoft’s ability to switch to different AI chips as needed. When the issue remained unresolved for weeks, Microsoft CEO Satya Nadella stepped in and resolved the dispute by having Nvidia back down on its demands. Jensen Huang had expressed concerns about companies like Microsoft and Amazon Web Services running out of data center space. Nadella’s intervention successfully resolved the conflict between Microsoft and Nvidia.
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https://www.hindustantimes.com/business/satya-nadella-stepped-in-to-solve-big-ai-chip-feud-between-nvidia-and-microsoft-over-this-issue-101719215842766-amp.html
Microsoft CEO Satya Nadella intervenes to resolve major AI ‘chip feud’ between Nvidia and Microsoft surrounding this issue
