Barely a year after investing more than $13 billion in OpenAI amid the artificial intelligence arms race, one would have been mistaken to think Microsoft (MSFT) would go slow. However, that is not the case, as the tech giant has again shown its willingness to go to extremes to safeguard its prospects around the technology.
Microsoft $3.2B Investment
The software giant has confirmed plans to invest $3.2 billion to gain access to artificial intelligence and cloud facilities in Sweden. The investments that align with the company’s sustainability goals will see it bet on the country’s rich supply of green energy. It also becomes the largest-ever investment in the country’s critical infrastructure.
The $3.2 billion investment will strengthen Microsoft’s footprint around AI by gaining access to over 20,000 graphic processing units at three data centers. Microsoft joins a growing list of tech giants betting on the Nordic region’s abundant clean energy. Meta Platforms (META) and Alphabet (GOOGL) already run data centers in the area at a time when there is a growing demand for clean energy needed to power energy-intensive artificial intelligence models and applications.
Nvidia vs. AMD on AI
Meanwhile, Microsoft is not the only company strengthening its prospects as the artificial intelligence arms race heats up. A fierce battle is brewing in the semiconductor space, pitying Nvidia (NVDA) and Advanced Micro Devices (AMD). The two chip giants have unveiled what they dub the following generation of chips at the heart of the AI revolution.
Nvidia offers its clients an utterly exclusive system, allowing companies to purchase its processors, networking equipment, and all the necessary components. On the other hand, AMD promotes open standards that enable its products to work seamlessly with those of competitors such as Intel Corp.
Rubin is the new chip slated for 2026 that Nvidia plans to use to strengthen its prospects in the burgeoning sector. The new chip will use HBM4, a next-generation iteration that leverages high bandwidth. Nvidia views the emergence of generative AI as a fresh wave of industrial transformation and anticipates a significant part in it as technology moves toward personal computers.
While Nvidia has been the primary beneficiary of the AI boom, the company seeks to broaden its customer base. Part of the plan is to reduce reliance on cloud computing giants from whom it generates most of its revenues. Therefore, the company is unveiling AI chips that would benefit other companies and governments looking to embrace AI.
Private Investment AI Fund
Separately, Venture Hub, a UK-based startup focused on artificial intelligence, is unveiling a private investment fund to purchase servers equipped with advanced Nvidia Corp chips. The company is raising $50 million to acquire servers powered by Nvidia H200 graphic processing units. The objective is to create a first-of-its-kind cluster of at least 96 servers, each equipped with H200 GPUs. These GPUs represent Nvidia’s most recent graphics processing units, boasting features that enhance their ability to handle vast data essential for artificial intelligence operations.
The decision to launch this fund coincides with Asia’s growing need for advanced computing infrastructure to support high-end technology operations. At the same time, there is a significant influx of investment into data centers as the demand for AI technologies increases. The largest corporations in the world are expected to invest up to $60 billion in the next few years in data centers across Southeast Asia as the region focuses on developing video streaming, e-commerce, and generative AI technologies.
