The tech giant, OpenAI's largest investor, has ramped up its spending on AI infrastructure as it seeks to dominate the rapidly evolving sector.

According to Omdia, a technology consultancy, Microsoft acquired an estimated 485,000 of Nvidia’s cutting-edge chips in 2024. This figure far outstrips the 224,000 chips purchased by its nearest US rival, Meta, and dwarfs the investments made by cloud computing heavyweights Amazon and Google.

Nvidia’s advanced graphics processing units (GPUs) have become the cornerstone of AI development, with demand consistently outpacing supply over the past two years. Microsoft’s strategic chip stockpiling has given it a significant advantage in the race to build the next generation of AI systems.

Big Tech companies have collectively poured tens of billions of dollars into data centres equipped with Nvidia’s latest hardware. These GPUs have become a coveted resource in Silicon Valley, particularly since the 2022 debut of ChatGPT, which ignited an unprecedented surge in AI investment.

Microsoft’s aggressive acquisition strategy underscores the intensifying competition among tech giants to lead the AI revolution. As AI models grow increasingly sophisticated and resource-intensive, access to Nvidia’s state-of-the-art chips has become a critical determinant of success.