News

Mark Zuckerberg Hints At Meta’s Nearly $9B Investment In Nvidia AI Chips – Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:META)



In a recent development, Meta Platforms Inc META CEO Mark Zuckerberg has hinted at the company’s massive investment in NVIDIA Corp NVDA AI chips.

What Happened: Zuckerberg revealed in an Instagram Reels post that Meta is allocating billions of dollars to Nvidia’s AI chips. The company’s AI-focused roadmap necessitates the construction of a substantial computing infrastructure, which will include 350,000 H100 graphics cards from Nvidia by the end of 2024, reported CNBC.

The H100, which was released in late 2022, is estimated to be priced between $25,000 and $30,000 by analysts at Raymond James. This could mean Meta’s expenditure on these chips could be close to $9 billion.

Zuckerberg also mentioned that Meta’s compute infrastructure will include “almost 600k H100 equivalents of compute if you include other GPUs.” This investment is crucial as Meta is focusing on artificial general intelligence (AGI) research, which Zuckerberg described as a “long term vision” for the company.

See Also: Here’s How To Get Up To $349 In Apple’s iPhone 7 ‘Loop Disease’ Class Action Lawsuit Settlement

Meta’s Chief Scientist Yann LeCun emphasized the significance of GPUs in AGI research during a recent event in San Francisco. He stated, “There is an AI war, and he’s supplying the weapons,” referring to Nvidia CEO Jensen Huang.

Meta’s total expenses for 2024 are projected to be between $94 billion and $99 billion, partly due to its computing expansion, as per the company’s third-quarter earnings report.

Why It Matters: This announcement comes after Meta, along with Microsoft Corp MSFT and OpenAI, opted for AMD’s Instinct MI300X AI chip in December. This move was seen as a potential challenge to Nvidia’s AI chip dominance.

Despite this, Nvidia remains a key player in the AI chip market, with its recent shift to designing lower-powered AI chips in response to U.S. regulations and its role in the generative AI surge, especially following OpenAI’s ChatGPT launch, marking it as a key player in AI advancements.

Investors and industry enthusiasts have been keenly following Nvidia’s standing in the semiconductors & semiconductor equipment industry, evaluating critical financial metrics, market position, and growth potential to gain a deeper understanding of the company’s performance in the industry.

Read Next: This $200 AI Device Could Replace Your iPhone In 2024

Image Via Shutterstock


Engineered by
Benzinga Neuro, Edited by


Kaustubh Bagalkote


The GPT-4-based Benzinga Neuro content generation system exploits the
extensive Benzinga Ecosystem, including native data, APIs, and more to
create comprehensive and timely stories for you.
Learn more.




Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button