Despite circulating rumors, Microsoft remains committed to procuring Nvidia’s H100 compute GPUs, according to Lin Baili, Chairman of Quanta, a prominent server manufacturer and an Nvidia partner. Quanta, in collaboration with Nvidia, confirms that the tech giant continues to purchase and install machines powered by Nvidia’s H100 processors for artificial intelligence (AI) and high-performance computing (HPC) workloads.
Addressing these rumors during the AI Technology and Application Outlook Forum, Quanta’s Chairman dismissed any speculations about Microsoft reducing orders for Nvidia’s H100 compute GPUs. Instead, he emphasized his unwavering confidence in the future of AI and acknowledged that Quanta has consistently secured numerous substantial orders. Baili also expressed optimism about the continuous growth of the AI server market.
Among the key contributors to AI’s advancements, Taiwan plays an indispensable role due to its robust technology supply chain. TSMC is just one factor behind Taiwan’s strength, with a comprehensive ecosystem that encompasses chip design, semiconductor foundries, and processor production for PCs and servers. However, Quanta remains concerned as most assembly processes occur in China.
Market research company Omdia recently reported that Nvidia shipped over 300,000 H100s in the second quarter of this year. Moreover, Omdia expects Nvidia to maintain a comparable sales volume in the coming quarters, which would result in the shipment of over 1.2 million GPUs in 2021 alone. Undoubtedly, this staggering figure will translate into tens of billions of dollars in revenue for Nvidia.
Market rumors suggest that Nvidia’s compute GPUs have been sold out until the second quarter of 2024. Therefore, even if Microsoft were to reduce its GPU purchases in the latter half of 2024, it would have minimal effect on the market or Nvidia’s operations for months to come.
FAQ
Q: Is Microsoft still procuring Nvidia’s H100 GPUs?
A: Yes, Microsoft continues to procure Nvidia’s H100 compute GPUs for AI and HPC workloads.
Q: What did Quanta’s Chairman say about the rumors?
A: Quanta’s Chairman, Lin Baili, refuted the rumors of Microsoft reducing its orders for Nvidia’s H100 GPUs and expressed confidence in the future of AI.
Q: Why is Taiwan significant in the AI industry?
A: Taiwan plays a vital role in AI due to its robust tech supply chain, which covers chip design, semiconductor foundries, and processor production for PCs and servers.
Q: How many GPUs did Nvidia ship in the second quarter of this year?
A: Nvidia shipped over 300,000 H100 GPUs in the second quarter of this year, and the company anticipates similar sales volumes in the upcoming quarters.
Q: Will a slow-down in Microsoft’s GPU purchases affect the market or Nvidia?
A: Market rumors suggest that Nvidia’s compute GPUs are sold out until the second quarter of 2024, so any reduction in Microsoft’s purchases would have no immediate impact on the market or Nvidia.