Tech sector faces severe computing power shortage, driving new partnerships

Technology companies, including major firms and startups, are experiencing a significant scarcity of computing power. This shortage has led to internal competition for resources, especially at companies like Google. In response, some entities are forming partnerships, such as the one between Anthropic and Elon Musk's xAI, to boost their computational capacity. The high demand has also sharply increased rental costs for key hardware like Nvidia's H100 chips, pushing firms to seek suppliers outside their traditional networks.