{"id":2891,"date":"2023-07-22T21:03:12","date_gmt":"2023-07-22T21:03:12","guid":{"rendered":"https:\/\/dailyai.com\/?p=2891"},"modified":"2023-07-22T23:06:22","modified_gmt":"2023-07-22T23:06:22","slug":"as-demand-for-ai-hardware-surges-startups-are-looking-for-a-slice-of-the-pie","status":"publish","type":"post","link":"https:\/\/dailyai.com\/da\/2023\/07\/as-demand-for-ai-hardware-surges-startups-are-looking-for-a-slice-of-the-pie\/","title":{"rendered":"Eftersp\u00f8rgslen efter AI-hardware er stigende, og nystartede virksomheder er p\u00e5 udkig efter en bid af kagen"},"content":{"rendered":"<p><b>As tech companies seek high-end chips to train their AI models, startups are queuing to alleviate the demand from giants like Nvidia.<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Nvidia joined the \u2018$1 trillion\u2019 club\u2019 <\/span><a href=\"https:\/\/dailyai.com\/2023\/05\/nvidia-market-value-briefly-touches-the-coveted-1-trillion-mark\/\"><span style=\"font-weight: 400;\">in May<\/span><\/a><span style=\"font-weight: 400;\">, its growth fueled by tremendous demand for high-end chips designed for AI, including the A100 and H100.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These chips are used by many of the big players in AI, including Inflection, Microsoft, Meta, and OpenAI, though a handful of companies produce their own chips, including Google.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The current supply of high-end chips simply isn\u2019t meeting demand, leaving a gap in the market for smaller companies such as SambaNova, Graphcore, and Tenstorrent, which have raised over $3bn for their AI hardware in recent years.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another AI chip manufacturing startup, Cerebras, <a href=\"https:\/\/www.cerebras.net\/press-release\/cerebras-and-g42-unveil-worlds-largest-supercomputer-for-ai-training-with-4-exaflops-to-fuel-a-new-era-of-innovation\">recently announced<\/a> a collaboration to build a network of supercomputers for UAE-based tech group G42.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Cerebras&#8217; CEO, Andrew Feldman, said of the deal, &#8220;AI has an insatiable demand for compute. When you&#8217;re David fighting Goliath, you look for cracks&#8230; [Nvidia&#8217;s] inability to meet demand is just such a crack.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Talal Alkaissi, CEO of G42 Cloud, said, &#8220;People can\u2019t get the hardware they want, or it\u2019s too expensive. The market is hungry for alternatives.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">G42 plans to resell excess capacity to other customers via cloud-computing platforms.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Demand for AI chips at record highs<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Major tech firms are developing their own semiconductors, such as Amazon Web Services, which launched its custom chip, Trainium, in 2020.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Google Cloud has offered customers Tensor Processing Units (TPUs) for several years and recently developed a <a href=\"https:\/\/www.fool.com\/investing\/2023\/04\/06\/alphabet-says-googles-latest-ai-chip-is-17-times-f\/\">high-end chip<\/a> that rivals Nvidia\u2019s A100 and H100. Elon Musk\u2019s new AI company xAI also intends <\/span><a href=\"https:\/\/dailyai.com\/2023\/07\/musks-mission-for-xai-is-to-find-out-what-the-hell-is-really-going-on\/\"><span style=\"font-weight: 400;\">to use custom chips<\/span><\/a><span style=\"font-weight: 400;\"> developed by\/in collaboration with Tesla.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In Europe, Axelera AI, based in the Netherlands, is developing AI chips designed for cars, medical devices, and security cameras rather than cloud and data centers, where Nvidia&#8217;s chips are in high demand.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Axelera CEO Fabrizio Del Maffeo stated, \u201cI always said since day one it\u2019s crazy to go against a trillion-dollar company with unlimited resources.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If a company can build high-end chips for AI purposes, the market is undoubtedly there. But that\u2019s a big if, as chips are notoriously complex to develop and manufacture.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mens teknologivirksomheder s\u00f8ger avancerede chips til at tr\u00e6ne deres AI-modeller, st\u00e5r nystartede virksomheder i k\u00f8 for at afhj\u00e6lpe eftersp\u00f8rgslen fra giganter som Nvidia. Nvidia blev medlem af \"$1 trillion\"-klubben i maj, og v\u00e6ksten blev drevet af en enorm eftersp\u00f8rgsel efter avancerede chips designet til AI, herunder A100 og H100.  Disse chips bruges af mange af de store akt\u00f8rer inden for AI, herunder Inflection, Microsoft, Meta og OpenAI, selvom en h\u00e5ndfuld virksomheder producerer deres egne chips, herunder Google.  Det nuv\u00e6rende udbud af avancerede chips opfylder simpelthen ikke eftersp\u00f8rgslen, hvilket efterlader et hul i markedet for mindre virksomheder som SambaNova, Graphcore og<\/p>","protected":false},"author":2,"featured_media":2892,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[84],"tags":[241,207,106,100],"class_list":["post-2891","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry","tag-chips","tag-llm","tag-nvidia","tag-semiconductors"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Demand for AI hardware is surging and startups are looking for a slice of the pie | DailyAI<\/title>\n<meta name=\"description\" content=\"The world\u2019s tech companies need high-end chips for building AI training infrastructure, and startups are cueing up to take the 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