A chip called graphics processing unit (GPU) is the fastest and most efficient way to run the calculations that allow AI companies to analyze big data. This year tech companies are desperate to get GPUs. The demand rose since last year when chat bots like ChatGPT brought in excitement over AI. Startups and the investors in them are after these tiny silicon bits since they provide the crucial compute power.

AI-chip market is monopolised by Nvidia. Tech companies typically buy access to chips and their compute power through cloud computing services offered by Google, Microsoft and Amazon. Such an arrangement does not make it necessary to have their own data centres with computer servers. AI explosion has led to a long wait list which extends to a year in some cases to access those chips through clouds. It has created a roadblock.

Big Tech firms have deep pockets to lay their hands on GPUs, but that has left the startups and researchers scrambling for chips.