Nvidia Chip Shortages Leave AI Startups Scrambling for Computing Power

That supply crunch means that at peak times the ideal GPUs at Astrias main cloud computing vendor (Amazon Web Services), which the startup needs to generate images for its clients, are at full capacity, and the company has to use more powerfuland more expensiveGPUs to get the job done..

The market leader, Nvidia, which makes up about 60 to 70 percent of the global supply of AI server chips, announced yesterday that it sold a record $10.3 billion worth of data center GPUs in the second quarter, up 171 percent from a year ago, and that sales should outpace expectations again in the current quarter..

Everywhere, engineering terms like optimization and smaller model size are in vogue as companies try to cut their GPU needs, and investors this year have bet hundreds of millions of dollars on startups whose software helps companies make do with the GPUs theyve got..

Were only a few weeks out before going public and will then need to monitor closely how well our system can scale, given the limitations of our service providers, Morgner says.. The industry is seeing strong demand for GPUs, OpenAI spokesperson Niko Felix says..

Astria, for example, secured additional capacity at AWS with help from Emad Mostaque, CEO of Stability AI, which is a close partner of AWS and whose technology Astria builds upon.. Bookkeeping startup Pilot, which uses OpenAI tech for some mundane data sorting, gained early access to GPT-4 after asking for aid from university friends, employees, and venture capitalists with connections to OpenAI..

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