Ending Soon! Save 33% on All Access

Mark Zuckerberg Is Sitting on a Huge Stockpile of AI Chips as Companies Compete for Limited Supplies Nvidia CEO Jensen Huang told investors on Wednesday that the company was doing its best to share the chips evenly amid unprecedented demand.

By Beatrice Nolan

Key Takeaways

  • Nvidia chips remain in high demand, especially from tech companies.
  • Its CEO told investors the company was trying its best to allocate them fairly.
  • Mark Zuckerberg recently said Meta would own 340,000 Nvidia H100 chips by the end of 2024.
JOSH EDELSON via Business Insider
Mark Zuckerberg.

This article originally appeared on Business Insider.

Nvidia's CEO recently shed light on the allocation of its in-demand chips.

The comments have brought Meta boss Mark Zuckerberg's extensive stockpile back into the spotlight.

Jensen Huang told investors on Wednesday that the company was doing its best to share the chips evenly amid unprecedented demand.

"We do the best we can to allocate fairly and to avoid allocating unnecessarily," Huang said in a call with analysts following Nvidia's fourth-quarter results.

Huang was responding to a question about distributing chips between the companies fighting over a limited supply, many of which are competitors.

"At the core of it, we want to allocate fairly, avoiding waste, and looking for opportunities to connect partners and end users," he said.

Meanwhile, Zuckerberg is plowing on with his plan to acquire hundreds of thousands of the chips as part of his ambition to create a "top-level product group" focused on generative AI.

Last month, Zuckerberg told The Verge that Meta would have more than 340,000 Nvidia H100 GPUs — the main chips companies use to train and deploy AI models — by the end of 2024.

Taking into account chips of other types, the CEO said he expected Meta to have amassed 600,000 GPUs by the end of the year, the report said.

The surge in global demand for the chips has dramatically boosted Nvidia's stock over the last 12 months.

The AI chipmaker reported better-than-expected quarterly revenues on Wednesday, with revenues of $22.1 billion in the fourth quarter — a 265% year-on-year increase. Nvidia stock surged almost 15% in premarket trading after posting the blockbuster sales, Business Insider reported.

Meta did not immediately respond to BI's request for comment.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Science & Technology

Make Music from Prompts with This AI Subscription, Just $50

This AI music generator promises to take you from prompt to song in just a few seconds.

Business News

Scarlett Johansson 'Shocked' That OpenAI Used a Voice 'So Eerily Similar' to Hers After Already Telling the Company 'No'

Johansson asked OpenAI how they created the AI voice that her "closest friends and news outlets could not tell the difference."

Starting a Business

How to Start an Event Planning Business: Your Comprehensive Guide

Not sure how to become an event planner? Use this step-by-step guide to launch your event planning business from scratch.

Business News

Now that OpenAI's Superalignment Team Has Been Disbanded, Who's Preventing AI from Going Rogue?

We spoke to an AI expert who says safety and innovation are not separate things that must be balanced; they go hand in hand.

Employee Experience & Recruiting

Beyond the Great Resignation — How to Attract Freelancers and Independent Talent Back to Traditional Work

Discussing the recent workplace exit of employees in search of more meaningful work and ways companies can attract that talent back.

Franchise

What Franchising Can Teach The NFL About The Impact of Private Equity

The NFL is smart to take a thoughtful approach before approving institutional capital's investment in teams.