Microsoft warns of service disruptions if it can’t get enough A.I. chips for its data centers

PUBLISHED FRI, JUL 28 202311:03 AM EDTUPDATED FRI, JUL 28 202312:47 PM EDT

Jordan Novet@JORDANNOVET

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KEY POINTS

  • Microsoft updated a risk factor in its annual report with a reference to the importance of securing graphics processing units for its data centers.
  • The company has been ramping up capital expenditures, including for GPUs, to meet rising demand for cloud-based artificial intelligence services.

Satya Nadella, chief executive officer of Microsoft Corp., during the company’s Ignite Spotlight event in Seoul, South Korea, on Tuesday, Nov. 15, 2022.

SeongJoon Cho | Bloomberg | Getty Images

Microsoft is emphasizing to investors that graphics processing units are a critical raw material for its fast-growing cloud business. In its annual report released late Thursday, the software maker added language about GPUs to a risk factor for outages that can arise if it can’t get the infrastructure it needs.

The language reflects the growing demand at the top technology companies for the hardware that’s necessary to provide artificial intelligence capabilities to smaller businesses.

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https://www.cnbc.com/2023/07/28/microsoft-annual-report-highlights-importance-of-gpus.html

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