fortune.com Open in urlscan Pro
3.171.76.33  Public Scan

Form analysis
0 forms found in the DOM

Text Content

SEARCH

SIGN INSubscribe Now
 * Home
 * News
 * Tech
   * AI
 * Finance
   * Personal Finance
   * Real Estate
   * Crypto
 * Leadership
   * Success
 * Well
   * Life
   * Health
   * Mind
   * Family
   * Aging Well
 * Recommends
   * Credit Cards
   * Banking
   * Insurance
   * Mortgages
   * Investing
   * Loans
   * Education
   * Business Solutions
 * Fortune 500
   * FORTUNE SEA 500
   * Fortune 500 Europe
   * Fortune Global 500
   * Fortune China 500

Home Page
Subscribe Now
 * Sections
    * FORTUNE 500
    * News
    * Europe
    * Asia
    * Tech
       * AI
   
    * Finance
       * Personal Finance
       * Real Estate
       * Crypto
   
    * Leadership
       * Success
   
    * Well
       * Life
       * Health
       * Mind
       * Family
       * Aging Well
   
    * Recommends
       * Credit Cards
       * Banking
          * Best High-Yield Savings Accounts
          * Best Savings Accounts
          * Best CD Rates
          * Best Money Market Accounts
          * Savings Calculator
      
       * Insurance
       * Mortgages
       * Investing
       * Loans
       * Education
          * Top Business Schools
          * Top Information Technology and Data Schools
          * Top Health Schools
      
       * Business Solutions
   
    * Video

 * Rankings
    * FORTUNE 500
    * GLOBAL 500
    * MOST POWERFUL WOMEN
    * GREAT PLACE TO WORK LISTS
    * BEST MBA PROGRAMS
    * MORE RANKINGS
    * Fortune Company List

 * Analytics

 * Newsletters
 * Magazine
    * December 2023/January 2024
    * October/November 2023
    * August/September 2023
    * June/July 2023
    * April/May 2023
    * February/March 2023

 * Live Media
 * CEO Initiative


Tech·Microsoft


MICROSOFT IS THE BIGGEST OF THE MYSTERY WHALES BUYING UP NVIDIA CHIPS

BYPaolo Confino
December 19, 2024 at 3:43 AM PST
 * 
 * 
 * 
 * 

Microsoft bought 485,000 of Nvidia’s Hopper chips in 2024, according to a report
from research firm Omdia.
Chip Somodevilla—Getty Images

 * Microsoft bought more than twice as many of Nvidia’s Hopper chips in 2024
   than its next largest customer. Chips have been in short supply in Silicon
   Valley as the most important companies race to one-up one another’s AI
   capabilities. But after two years of shortages, Microsoft finally has the
   amount of AI chips it needs, according to CEO Satya Nadella.

Earlier this year, Fortune reported that nearly half of Nvidia’s revenue was
coming from just a handful of companies spending billions on its hottest
products, like chips built for training AI models. Now, we finally have more
insight about those mystery whales—and it appears Microsoft is the largest among
them.



Microsoft bought more of Nvidia’s top-of-the-line Hopper chips than any of its
other Big Tech rivals in 2024, according to an estimate from tech industry
research firm Omdia. The Redmond, Wash.–based tech giant, which is also OpenAI’s
largest investor, purchased 485,000 high-performance computing chips, far more
than any of the other major Silicon Valley developers in the AI race. 



Nvidia’s next largest customers were the Chinese tech firms Tencent and TikTok
owner ByteDance. Both purchased less than half as many chips as Microsoft, with
roughly 230,000 over the course of this year, according to Omdia’s estimates.
The next largest U.S. customer was Meta, which bought approximately 224,000 of
Nvidia’s Hopper chips. 

For the past two years, the Hopper chip has been Nvidia’s most advanced, but it
will be replaced by the upgraded Blackwell in 2025. 

Microsoft’s rivals in the AI race—Amazon and Google—acquired roughly 196,000 and
169,000 Hopper chips, respectively. Meta, Amazon, and Google are all working on
developing their own chips, which they intend to use to power their future AI
ambitions. 



Microsoft’s massive stockpile of Nvidia chips indicates it is committing vast
financial and computing resources to developing the systems it, and much of the
tech industry, believe will be the defining technology of the future. OpenAI
kicked off the current AI arms race when it released ChatGPT-3.5 in November
2022. Since that time, Nvidia’s other major customers have funneled vast amounts
of capital expenditures on research and development. 

Meta expects to devote between $38 billion and $40 billion to capex companywide,
largely driven by investments into data centers and computing infrastructure for
AI. In the first three quarters of this year, Google’s capex rose 80% compared
with the same period last year to $38.3 billion, according to SEC filings.
Meanwhile, Amazon has invested in the development of its own AI capabilities and
acquired a substantial stake in leading AI startup Anthropic. 

But Microsoft’s substantial purchases seem to be helping it secure enough AI
chips, which had previously been in short supply. In a BG2 podcast interview
last week, Microsoft CEO Satya Nadella said the company no longer faced a
shortage of chips. “I am power [constrained], yes, I’m not chip-supply
constrained,” he said. 

Over the past two years, it’s been extremely hard for developers to get enough
AI chips. Manufacturers like Nvidia and AMD could barely keep up with the
roaring demand for their products. For Microsoft, those days seem to be over. 

“We were definitely constrained in ’24,” Nadella said. “What we have told the
street is that’s why we are optimistic about the first half of ’25, which is the
rest of our fiscal year. And then after that I think we’ll be in better shape
going into 2026.”



A spokesperson for Microsoft said the company continued to expand its
partnerships with chip manufacturers. “Partners such as Nvidia enable us to
incorporate the best innovation of the industry into Microsoft infrastructure,”
the spokesperson said.

Nvidia declined to comment on Omdia’s report.

These most recent reports on Nvidia’s customers come at a time when demand for
the chipmaker’s products is under renewed scrutiny. Comments like Nadella’s have
some investors worried that years of blockbuster demand could be waning. After
three years of record-breaking performance, Nvidia’s stock has dropped slightly
in recent weeks. Bullish investors have said this was the result of long-term
investors selling stock to bring home some of their profits, rather than a lack
of faith from Wall Street. Nvidia CEO Jensen Huang swatted away concerns about
the company’s future on its latest earnings call in October. Demand for its
soon-to-be-released Blackwell chip was “insane,” with customers lining up to get
their hands on the new release, he told CNBC at the time.    



“Everybody wants to have the most, and everybody wants to be first,” Huang said.



Who will be next to lead the Fortune 500? See who made our list of the 25 Most
Powerful Rising Executives.







Sponsored Stories





LATEST IN TECH

 * 3 hours ago
   Success - Andy Jassy
   
   
   AMAZON CEO ANDY JASSY: AN ‘EMBARRASSING’ AMOUNT OF YOUR SUCCESS IN YOUR 20S
   DEPENDS ON YOUR ATTITUDE
   
   BYOrianna Rosa Royle
   December 24, 2024
 * 16 hours ago
   Tech - electric vehicles
   
   
   CHINA’S IN THE DRIVER’S SEAT AS EV SALES ARE SET TO KEEP GROWING INTO 2025
   
   BYLionel Lim
   December 23, 2024
 * 20 hours ago
   Tech - PayPal
   
   
   HONEY, THE POPULAR BROWSER EXTENSION PROMOTED BY MRBEAST AND OVER A THOUSAND
   YOUTUBE CHANNELS, ACCUSED OF BEING A SCAM
   
   BYDave Smith
   December 23, 2024
 * 1 day ago
   Newsletters - Term Sheet
   
   
   A LOOK INSIDE D.C.’S NEW FINANCIAL POWER SCENE
   
   BYLeo Schwartz
   December 23, 2024
 * 1 day ago
   Tech - semiconductors
   
   
   THE U.S. LAUNCHES INVESTIGATION OF CHINESE-MADE CHIPS, USED IN EVERYTHING
   FROM CARS TO MEDICAL DEVICES
   
   BYAFP
   December 23, 2024
 * 1 day ago
   Newsletters - Data Sheet
   
   
   PALANTIR, ANDURIL, SPACEX, OPENAI COULD PARTNER TO BID FOR U.S. DEFENSE
   CONTRACTS
   
   BYAndrew Nusca
   December 23, 2024




MOST POPULAR

 * 22 hours ago
   Personal Finance
   
   
   THE IRS IS SENDING $1,400 STIMULUS CHECKS TO 1 MILLION TAXPAYERS. HOW TO TELL
   IF YOU QUALIFY
   
   BYAlicia Adamczyk
   December 23, 2024
 * 1 day ago
   Politics
   
   
   TRUMP'S DEMAND FOR CONTROL OF GREENLAND IS IMMEDIATELY REJECTED
   
   BYJim Edwards
   December 23, 2024
 * 1 day ago
   Finance
   
   
   THIS IS AMERICA'S 'FATAL FLAW' AS THE U.S. BUBBLE GETS READY TO POP, MARKET
   EXPERT WARNS
   
   BYJason Ma
   December 22, 2024
 * 1 day ago
   Retail
   
   
   'PEOPLE DON'T WANT TO SMELL LIKE OTHERS ANYMORE'—THIS LARGELY UNKNOWN PERFUME
   BRAND DOESN'T ADVERTISE, BUT ITS SALES HAVE STILL RISEN 50%
   
   BYKatell Prigent and AFP
   December 23, 2024
 * 3 days ago
   Health
   
   
   FORMER CIGNA INSURANCE EXECUTIVE SAYS HE QUIT AFTER WITNESSING AN INDUSTRY
   THAT 'PUTS PROFITS OVER PATIENTS'
   
   BYAni Freedman
   December 20, 2024
 * 1 day ago
   Finance
   
   
   THE IRS IS SENDING UNCLAIMED STIMULUS FUNDS VIA CHECKS OF UP TO $1,400 EACH;
   HERE'S WHO IS ELIGIBLE
   
   BYThe Associated Press
   December 22, 2024




RELATED ARTICLES

 * Tech
   
   
   NEARLY HALF OF NVIDIA’S REVENUE COMES FROM JUST FOUR MYSTERY WHALES EACH
   BUYING $3 BILLION–PLUS
   
   BY Christiaan Hetzner
   August 29, 2024
 * Finance
   
   
   NVIDIA STOCK SURGES AS CEO TOUTS ‘INSANE’ DEMAND FOR NEW BLACKWELL AI CHIPS
   
   BY Greg McKenna
   October 3, 2024
 * Tech
   
   
   MARC BENIOFF WARNS EXCESSIVE AI SPENDING IS A ‘RACE TO THE BOTTOM,’ AND HE
   PLANS TO TAKE ADVANTAGE OF IT
   
   BY Marco Quiroz-Gutierrez
   December 12, 2024
 * Newsletters
   
   
   SONY BUYS 10% OF ‘ELDEN RING’ OWNER KADOKAWA
   
   BY Andrew Nusca
   December 20, 2024
 * Tech
   
   
   NVIDIA SLAPPED WITH A CHINESE ANTITRUST PROBE AS BEIJING COLLECTS ‘BARGAINING
   CHIPS’ AHEAD OF TRUMP’S RETURN
   
   BY Lionel Lim
   December 10, 2024
 * Newsletters
   
   
   FROM NVIDIA TO ANTHROPIC, MEET THE FORTUNE 50 AI INNOVATORS
   
   BY Sheryl Estrada
   November 21, 2024

Rankings
 * 100 Best Companies
 * Fortune 500
 * Global 500
 * Fortune 500 Europe

 * Most Powerful Women
 * Future 50
 * World’s Most Admired Companies
 * See All Rankings

Sections
 * Finance
 * Leadership
 * Success
 * Tech

 * Asia
 * Europe
 * Environment
 * Fortune Crypto

 * Health
 * Well
 * Retail
 * Lifestyle
 * Politics

 * Newsletters
 * Magazine
 * Features
 * Commentary

 * MPW
 * CEO Initiative
 * Conferences
 * Personal Finance
 * Recommends

Customer Support
 * Frequently Asked Questions
 * Customer Service Portal
 * Privacy Policy
 * Terms of Use
 * Single Issues for Purchase
 * International Print

Commercial Services
 * Fortune Brand Studio
 * Fortune Analytics
 * Fortune Conferences
 * Advertising
 * Business Development

About Us
 * About Us
 * Editorial Calendar
 * Press Center
 * Work at Fortune
 * Diversity and Inclusion
 * Terms and Conditions
 * Site Map

© 2024 Fortune Media IP Limited. All Rights Reserved. Use of this site
constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at
Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and
other countries. FORTUNE may receive compensation for some links to products and
services on this website. Offers may be subject to change without notice.

 * 
 * 
 * 
 * 
 * 






search by queryly Advanced Search

We use cookies to enable, optimize and analyze the operation of our website. We
may also share information collected by cookies with third parties, including
for advertising purposes. By clicking “Accept All Cookies”, you agree to the
placement of cookies on your device and to this data processing. To manage your
cookie preferences, select “Cookie Settings”. For more information, please see
our Privacy Policy. Please note that even if you click “Reject All Cookies,”
cookies that are Necessary or Required for site functionality will still be
placed on your device.
Cookies Settings Reject All Cookies Accept All Cookies



PRIVACY PREFERENCE CENTER




 * YOUR PRIVACY


 * STRICTLY NECESSARY COOKIES


 * ANALYTICS COOKIES

YOUR PRIVACY

When you visit our website, we may place cookies on your device, and they may
collect personal data from you. You can choose not to allow certain types of
cookies. Click on the different category headings to find out more and change
our default settings according to your preference. You cannot opt-out of
Strictly Necessary Cookies.

STRICTLY NECESSARY COOKIES

Always Active

These cookies are necessary for the website to function and cannot be switched
off in our systems. They are usually only set in response to actions made by you
which amount to a request for services, such as setting your privacy
preferences, logging in or filling in forms. You can set your browser to block
or alert you about these cookies, but some parts of the site will not then work.

ANALYTICS COOKIES

Analytics Cookies




 * SOCIAL MEDIA COOKIES
   
   Switch Label label
   
   These cookies are set by a range of social media services that we have added
   to the site to enable you to share our content with your friends and
   networks. They are capable of tracking your browser across other sites and
   building up a profile of your interests. This may impact the content and
   messages you see on other websites you visit. If you do not allow these
   cookies you may not be able to use or see these sharing tools.

 * TARGETING COOKIES
   
   Switch Label label
   
   Cookies of this category may be set on our website and are used to display
   personalized content to you that is believed to be in line with your
   interests. They are based on uniquely identifying your browser and internet
   device. For example, these cookies help us to provide information to you that
   is especially relevant to you.

 * FUNCTIONAL COOKIES
   
   Switch Label label
   
   These cookies enable the website to provide enhanced functionality and
   personalization. They may be set by us or by third-party providers whose
   services we have added to our pages. If you do not allow these cookies, then
   some or all of these services may not function properly.

 * PERFORMANCE COOKIES
   
   Switch Label label
   
   These cookies allow us to count visits and traffic sources so we can measure
   and improve the performance of our site. They help us to know which pages are
   the most and least popular and see how visitors move around the site. If you
   do not allow these cookies, we will not know when you have visited our site
   and will not be able to monitor its performance.

Back Button


COOKIE LIST

Filter Button
Consent Leg.Interest
checkbox label label
checkbox label label
checkbox label label

Clear
checkbox label label
Apply Cancel
Confirm My Choices
Reject All Allow All