Microsoft Leads the Charge with Massive Nvidia Chip Order Surge
1min read Recent reports from industry analyst Ming-Chi Kuo highlight a significant surge in Microsoft's orders for the Nvidia Blackwell GB200 chips. In the fourth quarter of 2024, Microsoft's demand has exceeded that of all other cloud service providers combined, with orders increasing three to four times.
Microsoft's enthusiasm for the GB200 is evident as it leads the market in procurement. The company's orders have risen sharply from an estimated 300-500 NVL36 units to approximately 1400-1500 units, with about 70% being the NVL72 model. This development signals Microsoft's strategic prioritization of the latest chip technology.
This surge in demand has prompted Microsoft to secure early commitments from key component suppliers to begin large-scale production and shipment by the fourth quarter of 2024. This initiative is expected to enhance Microsoft's supply chain performance ahead of other providers.
The ability of suppliers to fulfill these orders is critical, with income recognition anticipated to occur sooner for component suppliers compared to assembly suppliers. Microsoft's active discussions about capacity expansion with its suppliers also underline its commitment to meeting anticipated demand without delays.
In contrast, other cloud giants like Amazon and Meta have shown comparatively lower demand. Amazon's orders stand at 300-400 cabinets of the GB200 NVL36, while Meta focuses on different architectural needs. These figures highlight Microsoft’s aggressive approach to integrating cutting-edge technology within its infrastructure.
Finally, Microsoft plans to deploy these chips in cooler climate data centers, such as those in the United States, Canada, and Finland, to mitigate potential issues related to cooling system optimizations.
