Artificial intelligence is becoming increasingly popular, and many companies are looking to integrate it into their products and services. However, creating and maintaining an AI model can be expensive and time-consuming. That’s why you have to choice, you either need to strike a deal like Microsoft did with OpenAI, or spend a fortune to create your own AI model. ByteDance, the parent company of TikTok, has decided to choose second option. The company has ordered more than $1 billion worth of GPUs from Nvidia. Here are the details…

The Battle for the AI Entry Ticket: ByteDance Secures Critical Infrastructure and Challenges the Status Quo

ByteDance has placed an order of over $1 billion for GPUs from Nvidia this year. This purchase aims to secure critical infrastructure for cloud service and AI, highlighting a rapidly growing trend in the technology industry. This order alone is nearing the total number of commercial GPUs sold by Nvidia in China last year, suggesting a rapid surge in the demand for powerful computing hardware.

As AI algorithms become more sophisticated, they require more computing power to train and run. GPUs are well-suited for this task because they can perform parallel processing, which allows them to handle multiple tasks simultaneously.

The increasing demand for GPUs is also being driven by the growing popularity of cloud computing. Cloud computing platforms offer businesses and individuals access to powerful computing resources on demand. This makes it possible for businesses to develop and deploy AI applications without having to invest in their own hardware.

As AI becomes more widespread, businesses will need to invest in powerful computing resources to support their AI initiatives. This will create a significant market opportunity for GPU manufacturers and cloud computing providers.

RELATED:

(via)

RELATED ARTICLESMORE FROM AUTHOR