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Nadella Says Power, Not Chips, Now Limits AI as Microsoft Leaves GPUs Idle

On the BG2 podcast, he blamed scarce grid power paired with incomplete data‑center shells for deployment delays.

Overview

  • Satya Nadella said Microsoft currently has AI GPUs sitting in inventory because it lacks electricity and finished “warm shells” to plug them into.
  • He asserted the near‑term constraint has shifted from chip supply to siting facilities close to available power for rapid buildouts.
  • Sam Altman predicted excess computing capacity could emerge within two to six years, describing today’s scarcity as temporary.
  • Nadella outlined Microsoft’s twin focus on a “Token Factory” for infrastructure and an “Agent Factory” for the software ecosystem.
  • Reporting from the conversation highlighted the need for major grid expansion, including accounts of OpenAI calling for 100 gigawatts of new power generation annually.