AI Chip Shortage, Nvidia Sells Out

Social media giant Meta is facing unprecedented AI infrastructure costs, with projected AI-related spending soaring to a staggering $65 billion, potentially contributing to a total annual expenditure of $119 billion! Faced with this astronomical bill, the tech giant has decided to develop its own AI chips, and has already made significant progress. Recent reports indicate that Meta is about to begin a small-scale deployment of its custom chips, signaling a gradual move away from Nvidia and its reliance on their GPUs.
Meta is reportedly testing a self-designed chip for training AI systems, a move to lessen its reliance on hardware vendors like Nvidia. According to Reuters, the chip, manufactured in collaboration with Taiwan Semiconductor Manufacturing Company (TSMC), is specifically designed for AI workloads. Currently undergoing small-scale testing, Meta plans to expand production if the tests are successful. Image caption.