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Why Are Tech Companies Making Their Own AI Chips?
Chips1 min read
Big tech companies like Microsoft and Google work with Nvidia, the world's biggest AI chip maker, but they also build their own AI chips. They are not trying to compete head-on with Nvidia.
What happened
Microsoft and Google work closely with Nvidia, which makes the best-known AI chips in the world. At the same time, both companies keep their own chip projects. The article says these projects are not meant to directly beat Nvidia.
Why chips matter for AI
AI systems need very powerful computer chips to learn and to answer questions. Chips are the hardware that does this work. Companies that run large AI services need a lot of them, so chips are a major cost and a key part of their plans.
Why it matters
This shows that big tech companies want both outside suppliers and their own tools. Making some of their own chips may help them control costs and fit chips to their own AI software, while still buying from Nvidia when they need to. The article is short, so it does not give full details on their reasons.
What to watch
- Whether Microsoft and Google release new in-house AI chips
- How much they still rely on Nvidia chips
- Whether other big tech companies follow the same plan
Glossary
- Nvidia
- A company that makes powerful chips used to run AI systems.
- AI chip
- A special computer chip built to handle the heavy math that AI needs.
- Microsoft
- A large US technology company that makes software and cloud services.
- A large US technology company that runs search, online services, and cloud computing.