Nvidia Strikes $500M Investment Deal for AI Chips with Voltage Park: Report

<p>An AI cloud-computing organization funded by
cryptocurrency billionaire Jed McCaleb has invested approximately $500 million
in Nvidia's advanced chips. According to a report by Reuters, this investment aims
to transform the landscape of artificial intelligence (AI) computing by addressing the shortage of AI chips.</p><p>Voltage Park's CEO, Eric Park, told the media
publication that the organization had secured 24,000 Nvidia H100 chips
designed to cater to the demands of large AI models used for various
applications, including text generation, coding, image processing, video
analysis, and audio synthesis. The company plans to lease computing capacity to businesses engaged in AI projects. </p><p>Revolutionizing AI Computing?</p><p>These high-performance chips are set to offer both
long-term and short-term AI computing solutions at an affordable cost. Park expressed Voltage Park's mission to reshape the AI landscape:
"It’s our belief that basically the current ecosystem for <a href="https://www.financemagnates.com/terms/m/machine-learning/">machine learning</a>
is broken." </p><p>Voltage plans to set up clusters of the <a href="https://www.financemagnates.com/tag/nvidia/" target="_blank" rel="follow">Nvidia</a>
AI chips in strategic locations such as Texas, Virginia, and Washington. Some
of these chips are already operational, and the company anticipates to deploy
24,000 Nvidia chips by February.</p><p>Recently, the demand for advanced AI silicon has
skyrocketed, especially following the release of OpenAI's ChatGPT. Many
businesses have been scrambling to acquire powerful chips to fuel their ambitions
in the sector. Companies like Intel, Advanced Micro Devices, and
numerous startups offer competing AI chips and are currently experiencing high demand.</p><p>Rising Interest in AI Chip Development</p><p>Recently, OpenAI announced that it was <a href="https://www.financemagnates.com/trending/chatgpt-owner-openai-seeking-to-develop-its-own-ai-chips/" target="_blank" rel="follow">exploring the AI chip development</a> space. This move is in response to the pressing shortage of AI
chips, a critical resource powering its projects. </p><p>According to a report by <a href="https://www.financemagnates.com/" target="_blank" rel="follow">Finance Magnates</a>, Sam Altman, the CEO of OpenAI, recognized the significance of securing an ample supply of AI
chips. Notably, OpenAI has relied on a massive supercomputer equipped with
10,000 Nvidia's GPUs since 2020, which is considered a powerful but expensive setup.</p><p>Meanwhile, <a href="https://www.financemagnates.com/fintech/softbanks-son-wants-to-invest-in-openai-as-chatgpt-heavy-user/" target="_blank" rel="follow">SoftBank disclosed plans</a> to invest in the AI space in September. This announcement followed the successful initial public offering
of its subsidiary, Arm, a prominent British chip manufacturer. Masayoshi Son, the
CEO of SoftBank, said he was considering investing in OpenAI, Finance
Magnates reported, citing the Financial Times.</p>

This article was written by Jared Kirui at www.financemagnates.com.