Microsoft Tightens Grip on GPUs, Pressuring AI Customers

<p>AI startups are struggling to access <a href="https://www.theinformation.com/org-charts/nvidia">Nvidia</a> graphics processing units as <a href="https://www.theinformation.com/org-charts/microsoft">Microsoft</a> and other cloud providers divert GPU stockpiles to their internal teams or bigger cloud customers, leaving smaller firms scrambling for the remaining servers at higher prices.</p> <p>The supply crunch is impacting well-funded AI startups that have raised money from Sequoia Capital, Founders Fund, General Catalyst and Andreessen Horowitz and other major investment firms, according to founders and investors at some of those firms. The shortage prompted General Catalyst’s Hemant Taneja to send a survey to founders, inquiring about their ability to access compute, according to a person with direct knowledge.</p>