NYT Report
Polarization in AI Semiconductor Acquisition Between Large Corporations and Startups
"GPUs Are Rare Earths... AI Semiconductors More Urgent Than Money"
The surge of generative artificial intelligence (AI) like 'ChatGPT' is causing a shortage of AI semiconductors in the advanced technology startup industry.
According to the New York Times (NYT) on the 16th (local time), startups and investors are struggling to secure graphics processing units (GPUs), which are essential for developing and operating AI services.
GPUs were traditionally used mainly as computer graphics devices, but they have now become highly valuable AI semiconductors. This is because they can execute massive-scale data computations quickly and efficiently, which is crucial for providing advanced AI services. As a result, large corporations with capital power are purchasing AI semiconductors in bulk, while emerging startups are experiencing a shortage, creating a polarization phenomenon.
Jin Paoli, CEO of AI startup Dokyugami, described the situation by saying, "GPUs are like rare earth elements at this point." Securing GPUs is more urgent than attracting top talent or investment funds.
Unlike large corporations that own their own data centers, startups typically use cloud services provided by major companies such as Microsoft (MS), Google, and Amazon. The problem is that with the AI boom, it takes nearly a year to access high-performance semiconductors from Nvidia, which holds 90% of the AI semiconductor market, through cloud services. For startups where time is critical, this effectively blocks the opportunity for technology development.
Accordingly, the startup industry is striving to secure GPUs. Dokyugami gained opportunities through a computing service program operated by the U.S. National Science Foundation (NSF). Some startups have been established to help startups and researchers jointly purchase and use GPUs. The San Francisco Computing Group was founded for this purpose, raised investment, and secured 512 Nvidia H100 semiconductors last month.
Some venture investors are focusing on supplying AI semiconductors rather than money to nurture startups, NYT reported.
NYT stated that these startups are "desperately hunting to obtain indispensable items in the AI boom."
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