AI’s Full Potential Stifled by GPU Shortages

ai boom gpu shortage
Image Source: TechSpot


  • AI enterprises experience a boom, leading to surging GPU demand.
  • Nvidia faces occasional GPU shortages but assures improved supply in 2023.
  • Nvidia diverts production resources from GeForce RTX 4090 to H100s.
  • AMD’s potential to advance in the AI industry due to dominance in Windows PC CPUs.
  • Stiff competition from major players like Microsoft, AWS, and OpenAI in the AI sector

The latest statements emanating from AI enterprises suggest a burgeoning AI boom that’s triggering a surge in GPU demand, leading to reports of occasional shortages. Nvidia contends that its supply chains haven’t completely faltered in meeting this increased demand but acknowledges encountering minor snags, which offer some reassurance.

In response to the scarcity of Nvidia H100 and A100 enterprise GPUs, vital for AI workloads, companies like Microsoft and OpenAI are compelled to implement measures to alleviate the situation. 

Microsoft is now resorting to rate-limiting employees, while the CEO of Quora is voicing concerns that this hardware shortage is hindering the true potential of AI applications.  Elon Musk, in a moment of jest, quipped that acquiring enterprise GPUs is currently more challenging than procuring illegal substances.

Nvidia elucidates that the bottleneck in GPU manufacturing frequently lies not within the primary processing unit but rather in another component of the add-in board. In this specific instance, the issue lies in the packaging process, currently managed by TSMC’s 3D stacking chip-on-wafer-on-substrate (CoWoS) technology. 

Nvidia, however, assures that supply will significantly improve in the latter half of 2023. The impact of this situation on the consumer GPU market remains uncertain. Nevertheless, the AI boom has compelled Nvidia to divert some of its production resources originally allocated to GeForce RTX 4090 graphics cards towards the production of H100s. 

While statements from AI companies suggest that a shift towards AMD hardware would require time, a post from renowned hacker George Hotz reveals that his company, comma, is procuring Radeon 7900 XTX cards for this purpose.

Currently, the Green Team, led by Nvidia, is in charge of the AI industry. AMD is in a good position to significantly advance in the sector, claims TechSpot. Due to its dominance in Windows PC CPUs, which have cutting-edge AI blocks, AMD has a significant advantage in the field of artificial intelligence.

Earlier this year, groups previously engaged in GPU mining began endeavoring to pivot their infrastructure towards AI workloads, aiming to recoup their investments after the crypto winter. Although this transition may prove profitable for some, it is likely to be more arduous than mining due to stiff competition from major players like Microsoft, Amazon Web Services, and OpenAI.

Source(S): TechSpot

Adam Pierce

Adam Pierce is a seasoned technology journalist and professional content writer who has a genuine passion for delivering the latest tech news and updates. With a wealth of experience in the field, Adam is committed to providing NwayNews readers with accessible, informative, and engaging content. He aims to keep readers well-informed about the latest breakthroughs, gadget releases, and industry trends through his articles.

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