Microsoft technology chief says supply of Nvidia’s AI chips is improving
Nilay Patel, left, editor in chief of The Verge, and Kevin Scott, Microsoft’s chief technology officer, speak at Vox Media’s Code Conference at The Ritz-Carlton Laguna Niguel in Dana Point, California, on Sept. 27, 2023.
Jerod Harris | Vox Media | Getty Images
Microsoft technology chief Kevin Scott said on Wednesday that the company is having an easier time getting access to Nvidia‘s chips that run artificial intelligence workloads than it was a few months ago.
Speaking on stage at the Code Conference in Dana Point, California, Scott said the market for Nvidia’s graphics processing units is opening up a little. The GPUs have been heavily in demand since Microsoft-backed OpenAI launched the ChatGPT chatbot late last year.
“Demand was far exceeding the supply of GPU capacity that the whole ecosystem could produce,” Scott told The Verge’s Nilay Patel. “That is resolving. It’s still tight, but it’s getting better every week, and we’ve got more good news ahead of us than bad on that front, which is great.”
Microsoft, similar to Google and other tech companies, has been quickly adding generative AI to its own products and selling the technology’s capabilities to clients. Training and deploying the underlying AI models has mainly relied on Nvidia’s GPUs, creating scarcity of supply.
Nvidia said last month that it expects revenue growth this quarter of 170% from a year earlier. The company has such control of the AI chip market that its gross margin shot up from 44% to 70% in a year. Nvidia’s stock price is up 190% in 2023, far outpacing every other member of the S&P 500.
In an interview with Patel that was published in May, Scott said one of his responsibilities is controlling the GPU budget across Microsoft. He called it “a terrible job” that has been “miserable for five years now.”
“It’s easier now than when we talked last time,” Scott said Wednesday. At that time, generative AI technologies were still new and attracting broad attention from the public, he said.
The increased supply “makes my job of adjudicating these very gnarly conflicts less terrible,” he said.
Nvidia expects to increase supply each quarter through next year, finance chief Colette Kress told analysts on last month’s earnings call.
Traffic to ChatGPT has declined month over month for three consecutive months, Similarweb said in a blog post. Microsoft provides Azure cloud-computing services to OpenAI. Meanwhile, Microsoft is planning to start selling access to its Microsoft 365 Copilot to large organizations with subscriptions to its productivity software in November.
Scott declined to address the accuracy of media reports regarding Microsoft’s development of a custom AI chip, but he did highlight the company’s in-house silicon work. Microsoft has previously worked with Qualcomm on an Arm-based chip for Surface PCs.
“I’m not confirming anything, but I will say that we’ve got a pretty substantial silicon investment that we’ve had for years,” Scott said. “And the thing that we will do is we’ll make sure that we’re making the best choices for how we build these systems, using whatever options we have available. And the best option that’s been available during the last handful of years has been Nvidia.”
WATCH: Amazon’s A.I. investment is a page out of the OpenAI-Microsoft playbook: Deepwater’s Doug Clinton
George Kurtz, chief executive officer of Crowdstrike Inc., speaks during the Montgomery Summit in Santa Monica, California, U.S., on Wednesday, March 4, 2020.
Patrick T. Fallon | Bloomberg | Getty Images
CrowdStrike shares fell 7% in extended trading on Tuesday after the security software maker issued a weaker-than-expected revenue forecast.
Here’s how the company did against LSEG consensus:
- Earnings per share: 73 cents, adjusted vs. 65 cents expected
- Revenue: $1.10 billion vs. $1.10 billion expected
Revenue increased by nearly 20% in the fiscal first quarter, which ended on April 30, according to a statement. The company registered a net loss of $110.2 million, or 44 cents per share, compared with net income of $42.8 million, or 17 cents per share, in the same quarter last year.
Costs rose in sales and marketing as well as in research and development and administration, partly because of a broad software outage last summer.
For the current quarter, CrowdStrike called for 82 cents to 84 cents in adjusted earnings per share on $1.14 billion to $1.15 million in revenue. Analysts polled by LSEG were expecting 81 cents per share and $1.16 billion in revenue.
CrowdStrike bumped up its guidance for full-year earnings but maintained its expectation for revenue. The company now sees $3.44 to $3.56 in adjusted earnings per share, with $4.74 billion to $4.81 billion in revenue. The LSEG consensus was $3.43 per share and $4.77 billion in revenue. The earnings guidance provided in March was $3.33 to $3.45 in adjusted earnings per share.
Also on Tuesday, CrowdStrike said it had earmarked $1 billion for share buybacks.
“Today’s announced share repurchase reflects our confidence in CrowdStrike’s future and unwavering mission of stopping breaches,” CEO George Kurtz said in the statement.
As of Tuesday’s close, the stock was up 43% so far in 2025, while the S&P 500 index had gained less than 2%.
Executives will discuss the results on a conference call with analysts starting at 5 p.m. ET.
WATCH: Trade Tracker: Malcolm Ethridge buys more CrowdStrike, Palo Alto Networks, Spotify and Oracle
An attendee wearing a cow costume while playing Mario Kart World by Nintendo Switch 2 during the Nintendo Switch 2 Experience at the Excel London international exhibition and convention centre in London on April 11, 2025.
Isabel Infantes | Reuters
Nvidia CEO Jensen Huang on Tuesday talked up the capabilities of Nintendo‘s new Switch 2, days before the long-awaited console is set to hit store shelves.
In a video posted by Nintendo, Huang called the chip inside the Switch 2 “unlike anything we’ve built before.”
“It brings together three breakthroughs: The most advanced graphics ever in a mobile device, full hardware ray tracing, high dynamic range for brighter highlights and deeper shadows, and an architecture that supports backward compatibility,” Huang said.
He added that the console has dedicated artificial intelligence processors to “sharpen, animate and enhance gameplay in real time.”
Huang’s comments come as Nintendo prepares to release the Switch 2 on Thursday. The Switch 2 is Nintendo’s first new console in eight years, and it is expected to be a bigger and faster version of its predecessor. The device costs $449.99.
Huang also paid tribute to the vision of former Nintendo CEO Satoru Iwata, who died before the original Switch was released.
“Switch 2 is more than a new console,” Huang said. “It’s a new chapter worthy of Iwata Son’s vision.”
WATCH: Nintendo expects to sell 15 million units of the Switch 2
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