Nvidia and Microsoft have been engaged in a fight over how Nvidia chips are used, according to a report from The Information. CEO Jensen Huang’s attempts to control the allocation and installation of Nvidia chips led to a clash with Microsoft, with the latter feeling that Nvidia’s tight control was limiting their abilities. Huang had previously stated that the company dictated chip allocation to prevent companies from stockpiling amid supply shortages. However, when Nvidia attempted to dictate how its GPUs should be installed in Microsoft’s data centers, the conflict escalated.
The dispute reportedly arose when Nvidia tried to persuade Microsoft to purchase its latest flagship chip, the GB200, and install it exactly as designed into the server chassis. This move would have restricted Microsoft’s flexibility to switch to different AI chips in the future. The disagreement over server racks lasted for weeks and eventually reached the desk of Microsoft CEO Satya Nadella. Ultimately, Microsoft prevailed when Nvidia relented and allowed the tech giant to design its own custom racks.
Following this conflict, Nvidia’s shares rose by 4% on Tuesday, surpassing Microsoft’s market capitalization and making Nvidia the most valuable company in the world with a market value of $3.338 trillion compared to Microsoft’s $3.326 trillion. Despite the tense relationship between the two tech giants, representatives for Nvidia and Microsoft did not immediately respond to requests for comment.
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https://www.businessinsider.com/microsoft-nvidia-feud-jensen-huang-satya-nadella-2024-6?amp