IBM Considers Using In-House AI Chips to Reduce Cloud Service Costs
Portfolio Pulse from Anusuya Lahiri
IBM is considering using its in-house AI chips to reduce the costs of its new cloud service, Watsonx. The chips, manufactured by Samsung, are power efficient and could lower cloud service costs. IBM is not aiming to replace Nvidia's semiconductors, but to make AI systems more cost-efficient. IBM also plans to replace nearly 8,000 jobs with AI in the coming years.
July 12, 2023 | 12:54 pm
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NEUTRAL IMPACT
IBM's decision to use its own AI chips does not aim to replace Nvidia's semiconductors, implying that Nvidia's market position is not directly threatened by this move.
IBM's decision to use its own AI chips does not aim to replace Nvidia's semiconductors. This implies that Nvidia's market position is not directly threatened by this move.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
IBM's consideration to use its AI chips for its new cloud service could reduce operational costs and increase efficiency. This could potentially boost IBM's profitability and attractiveness to investors.
IBM's move to use its own AI chips could reduce costs and increase efficiency of its cloud services. This could potentially lead to increased profitability and make the company more attractive to investors.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Samsung, as the manufacturer of IBM's AI chips, could potentially see increased demand if IBM decides to use these chips for its cloud services.
As the manufacturer of IBM's AI chips, Samsung could potentially see increased demand if IBM decides to use these chips for its cloud services. This could positively impact Samsung's revenues.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60