The desperate hunt for the AI boom's most indispensable prize
tech: computer chips. In particular, Paoli needs a type of chip known as a graphics processing unit, or GPU, because it is the fastest and most efficient way to run the calculations that allow cutting-edge AI companies to analyze enormous amounts of data. So he's called everyone he knows in the industry who can help.
He's applied for a government grant that allows access to the chips. He's tried making Docugami's AI technology more efficient so it requires fewer GPUs. Two of his scientists have even repurposed old video gaming chips to help.
«I think about it as a rare earth metal at this point,» Paoli said of the chips. More than money, engineering talent, hype or even profits, tech companies this year are desperate for GPUs. The hunt for the essential component was kicked off last year when online chatbots like ChatGPT set off a wave of excitement over AI, leading the entire tech industry to pile on and creating a shortage of the chips.
In response, startups and their investors are now going to great lengths to get their hands on the tiny bits of silicon and the crucial «compute power» they provide. The dearth of AI chips has been exacerbated because Nvidia, a longtime provider of the chips, has a virtual lock on the market. Inundated with demand, the Silicon Valley company — which has surged to a $1 trillion valuation — is expected to report record financial results next week.
Tech companies typically buy access to AI chips and their compute power through cloud computing services from the likes of Google, Microsoft and Amazon. That way, they do not have to build and operate their own data centers full of computer servers connected with specialized networking gear. But the AI explosion has meant that there are long
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