Reports have emerged that Nvidia’s CEO Jensen Huang’s attempt to control the use of Nvidia chips has sparked a dispute with Microsoft. While Nvidia has recently surpassed Microsoft as the most valuable company in the world, tensions have been simmering between the two tech giants.
Huang’s efforts to dictate how chips are allocated and installed have reportedly caused friction with Microsoft. While Nvidia aims to prevent companies from hoarding chips due to limited supply, the conflict escalated when Nvidia tried to enforce specific installation methods for its GPUs in Microsoft data centers. This clash came to a head when Microsoft resisted Nvidia’s push for its GB200 flagship chip to be installed in server chassis as designed, which would have limited Microsoft’s flexibility in using different AI chips.
The dispute over how Nvidia chips should be installed in server racks dragged on for weeks and eventually reached Microsoft CEO Satya Nadella. Ultimately, Microsoft prevailed as Nvidia conceded to allow the tech company to design its own custom racks, according to reports.
While neither Nvidia nor Microsoft have commented on the issue, Nvidia’s market capitalization eclipsed that of Microsoft on Tuesday, making it the most valuable company globally. With a market value of $3.338 trillion, Nvidia edged past Microsoft’s $3.326 trillion market cap by $12 billion.
In conclusion, the power struggle between Nvidia and Microsoft highlights the challenges that arise when companies seek to exert control over the use of their products. The clash over chip allocation and installation underscores the complexities of managing relationships with key customers in the highly competitive tech industry. Ultimately, this dispute serves as a reminder of the delicate balance between asserting control over product use and meeting the needs and preferences of customers.
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https://www.businessinsider.in/tech/news/jensen-huangs-tight-control-over-nvidia-chips-reportedly-led-to-a-feud-with-microsoft/amp_articleshow/111140994.cms
