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As chip industry chases AI, US labs turn to newcomers

US national labs seek new chip suppliers like NextSilicon as the chip industry shifts to AI, causing supply shortages for high-precision computing.

Isabella Martinez
ByIsabella Martinez- Senior Editor
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ALBUQUERQUE, New Mexico - In a nondescript building on Kirtland Air Force Base, liquid-cooled supercomputers hum through complex math problems for the U.S. government, simulating hypersonic nuclear weapons.

For over a decade, chips from Nvidia or AMD handled this demanding work. But as these firms focus on AI, supply shortages worry Sandia National Laboratories.

Steve Monk, Sandia’s high-performance computing manager, said the pressure from the computing front and supply chain is stressful.

This opens the market to newcomers like NextSilicon, an Israeli startup whose chips use a data flow architecture for efficiency. Sandia is testing them, with a decision expected this fall.

Double-precision computing, crucial for scientific work, is declining in Nvidia's new Rubin chips, pushing labs to explore alternatives. Sandia aims to ensure chip availability regardless of market shifts.

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