UK’s Nscale to Provide Microsoft with 200,000 Nvidia AI Chips
LONDON, October 26, 2023 - microsoft has contracted UK-based infrastructure provider Nscale to supply 200,000 Nvidia H100 Tensor Core GPUs, critical components for powering artificial intelligence workloads. The multi-million pound deal underscores the growing demand for AI processing power and positions Nscale as a key player in the rapidly expanding AI hardware supply chain.
This agreement arrives as microsoft accelerates its investment in AI, notably through its partnership with OpenAI and the integration of AI capabilities across its product suite. The substantial chip order will bolster Microsoft’s capacity to meet surging demand for AI services from customers globally, while concurrently supporting the UK’s ambition to become an AI superpower. Nscale will manage the entire lifecycle of the GPUs, from procurement and integration to deployment and maintenance, offering Microsoft a streamlined solution for scaling its AI infrastructure.
Nscale, founded in 2019, specializes in providing high-performance computing infrastructure for AI and machine learning applications. The company secured a £14.5 million funding round in July 2023 to expand its operations and meet growing customer demand. The Nvidia H100 GPUs are currently among the most advanced AI chips available, offering notable performance gains over previous generations and are vital for training and deploying large language models and other complex AI applications.
The chips will be delivered throughout 2024 and 2025, according to Nscale, and will be utilized within Microsoft’s global network of datacenters. This partnership highlights the increasing reliance on specialized infrastructure providers to navigate the complexities of sourcing and managing cutting-edge AI hardware.
“This is a landmark deal for Nscale and a testament to the UK’s growing strength in the AI sector,” said Alex Fitzgerald, Nscale’s Chief Executive Officer, in a statement. “We are proud to be partnering with Microsoft to deliver the infrastructure needed to power the next generation of AI innovation.”
Microsoft did not promptly respond to requests for comment.
