Microsoft Surpasses All Cloud Rivals in Demand for NVIDIA’s GB200 AI Servers
NVIDIA’s new GB200 AI computers are being bought by Microsoft more quickly than by any other cloud service provider (CSP).
Industry analyst Ming-Chi Kuo says that Microsoft has become the biggest user for NVIDIA’s GB200 AI servers. The company has placed more orders for this cutting-edge technology than all other cloud service providers (CSPs) put together. The tech giant’s need for the computers increased three to four times in Q4 2024, which shows that a lot more were bought than in earlier quarters.
In a recent Medium post, Kuo said that most of NVIDIA’s GB200 AI server sales are now coming from Microsoft. NVIDIA’s supply chain is likely to be pushed by the company’s aggressive plans to grow. Mass production and shipping will begin in late 2024. Key suppliers will work harder to meet Microsoft’s needs before rival CSPs, which will strengthen Microsoft’s position as the leader in AI infrastructure.
Kuo expects Blackwell AI GPU chips—a key component of the GB200 servers of NVIDIA—to range between 150-200 thousand units in Q4 2024. This figure is expected to expand in the first quarter of 2025, with shipments increasing to 500’000 to 550’000 units, or 200-250 percent increase over quarters.
Microsoft’s main goal is to make its data centers more powerful. About 70% of its new server racks will likely have the advanced NVL72 setup. These AI server cabinets are being put in data centers in cooler places, like Washington state, Quebec, and Helsinki, to help with cooling problems that might come up.
This rise in demand for AI infrastructure shows how determined Microsoft is to be the leader in the AI cloud market by adopting NVIDIA’s latest technology before its rivals.
