{"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\/nb\/2023\/07\/as-demand-for-ai-hardware-surges-startups-are-looking-for-a-slice-of-the-pie\/","title":{"rendered":"Ettersp\u00f8rselen etter AI-maskinvare \u00f8ker kraftig, og nystartede selskaper er p\u00e5 jakt etter en del av kaken"},"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>Teknologiselskaper er p\u00e5 jakt etter avanserte brikker for \u00e5 trene opp sine AI-modeller, og nystartede selskaper st\u00e5r i k\u00f8 for \u00e5 redusere ettersp\u00f8rselen fra giganter som Nvidia. Nvidia ble en del av \"$1 billioner\"-klubben i mai, og veksten ble drevet frem av en enorm ettersp\u00f8rsel etter avanserte brikker designet for AI, inkludert A100 og H100.  Disse brikkene brukes av mange av de store akt\u00f8rene innen AI, inkludert Inflection, Microsoft, Meta og OpenAI, selv om en h\u00e5ndfull selskaper produserer sine egne brikker, deriblant Google.  Det n\u00e5v\u00e6rende tilbudet av avanserte brikker dekker rett og slett ikke ettersp\u00f8rselen, noe som etterlater et hull i markedet for mindre selskaper 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 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