Why Microsoft's Satya Nadella had to step in amid 'chip feud' with Nvidia

livemint.com:

Satya Nadella had to step in to resolve a lock-step with Nvidia after the two tech giants clashed for months over the design of an artificial intelligence (AI) chip, according to a report by The Information.The root of the issue was reportedly Nvidia CEO Jensen Huang's "tight control" over how his company's chips are distributed and installed by clients, which led to a months-long fight with Microsoft, it added.Huang has been open about controlling who gets how many chips in order to prevent companies from stockpiling the item during periods of limited supply.The bone of contention here was that Nvidia also tried to dictate the server rack configuration within Microsoft's data centres where the chips were being installed. However, installing the chips as Nvidia wanted could have affected Microsoft's ability to switch to different AI chips, the report added citing sources.The report said that disagreement over how Microsoft was using the hardware after its purchase led to the production of Nvidia's next flagship chip GB200 --- complete with a server rack design specified by Huang.The long-drawn argument only concluded when it reached Nadella's desk, and he reportedly made Nvidia roll back their demands.