"It takes a lot of computing power to run an AI product - and as the tech industry races to tap the power of AI models, there's a parallel race underway to build the infrastructure that will power them. On a recent earnings call, Nvidia CEO Jensen Huang estimated that between $3 trillion and $4 trillion will be spent on AI infrastructure by the end of the decade - with much of that money coming from AI companies."
"This is arguably the deal that kicked off the whole contemporary AI boom: In 2019, Microsoft made a $1 billion investment in a buzzy non-profit called OpenAI, known mostly for its association with Elon Musk. Crucially, the deal made Microsoft the exclusive cloud provider for OpenAI - and as the demands of model training became more intense, more of Microsoft's investment started to come in the form of Azure cloud credit rather than cash."
AI model training and deployment require massive computing and power, triggering a global infrastructure buildout and heavy spending. Nvidia estimated $3–$4 trillion will be spent on AI infrastructure by decade's end, with demand straining power grids and construction capacity. Major technology companies including Meta, Oracle, Microsoft, Google, and OpenAI are undertaking large data-center and cloud investments to meet compute needs. Microsoft's 2019 $1 billion investment in OpenAI made Azure the exclusive provider and later shifted to Azure cloud credits as compute demands rose. Microsoft's investment later grew to nearly $14 billion, and OpenAI has since relaxed exclusivity to seek other infrastructure providers.
Read at TechCrunch
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