Microsoft informed investors about the critical importance of the supply of graphics processors (GPUs), which are both the main resource and a risk factor for the business of cloud services that are part of the technological ecosystem of the corporation and are at the stage of intensive scaling.

According to the information available to the media, the report of the multinational corporation for the fiscal year 2023 contains three paragraphs devoted to graphics processors. This corporate document emphasizes the importance of the mentioned hardware and the critical need for access to it. The media draw attention to the fact that in the report for the last financial year, the technology giant did not mention graphics processors and their importance in the context of Microsoft’s activities. Changes in the emphasis may be either the result of problems with access to hardware, or an increase in the intensity of the corporation’s activities in projects where GPUs are needed.

The tech giant’s report for fiscal year 2023 contains information that Microsoft is currently looking for and evaluating opportunities to expand data centers and increase capacity to meet customer needs, which are changing amid growing interest in artificial intelligence and the increasing penetration of machine mind into many areas of life. The corporation also notes that the centers where information management activities are carried out depend on the availability of permitted and usable land plots, energy consumption at a predictable level, network resources, and servers.

The media reports that the technology giant intends to develop its cloud business. As part of the implementation of these intentions, Microsoft relies on graphics processors for hardware that is necessary for advanced artificial intelligence.

The report also contains information that as a result of active interaction with OpenAI, the technology giant has access to models ChatGPT and various configurations of digital intelligence, which is especially important for improving products such as Microsoft Outlook and Microsoft Word.

The corporation has also established a partnership with CoreWeave, which is supported by Nvidia. The technology giant needs this cooperation in order to ensure an acceptable level of GPU power. In the future, the corporation intends to increase the amount of capital expenditures to pay for the operation of data centers, network equipment, central processors, and GPUs.

The Microsoft report for the fiscal year 2023 indicates that computing power should increase, as there is currently a steady increase in user traffic, scaling of services, and the complexity of products. The Corporation separately notes significant costs for the construction, purchase, or lease of data centers and equipment. Microsoft also announced another sensitive item of expenditure, which is related to the modernization of technologies and network infrastructure to maintain traffic processing capabilities.

Currently, the demand for graphics processes is at a high level. A clear confirmation of this is the fact that cryptocurrency miners are re-equipping their rigs for use in artificial intelligence applications.

As we have reported earlier, Microsoft Gives Out Free Cybersecurity Tools.