The chips are small and some can be held in the palm of a hand
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Microsoft is one of them.
Key facts
Nearly two years on, in the middle of a $280bn (£208bn) expansion, the company has 2.2m AI chips installed, according to internal documents seen by the Guardian — This is slightly lower than Microsoft’s own figures for its datacentre efficiency, which appear in a 2024 sustainability report and suggest that 89% of the electricity in its new datacentres powers
If Microsoft has 10GW of capacity, dividing this by 700 watts suggests it should have 12m chips
He said these reports suggest Microsoft’s AI capacity in 2024 was probably closer to 1.2GW
Summary
The chips are small and some can be held in the palm of a hand. It is not a small shortfall either. Put simply, the global AI arms race requires a massive build-out of datacentres that run on extremely expensive chips. This highlights something even more fundamental about charting the progress being made in the development of AI technologies.