Microsoft’s Satya Nadella tackled the AI scaling challenge at Microsoft Ignite.The scaling laws in AI are not physical laws but empirical observations.Efforts in areas such as model architectures, data regimes and system architectures are needed to push innovation.Microsoft is working closely with NVIDIA on scaling test-time computing for OpenAI.'Tokens per watt plus dollar' is Microsoft's new metric to reflect the efficiency of generating tokens.Data centres are now viewed as a product by NVIDIA rather than just GPUs.Electricity, supply chain and capital are major challenges when it comes to scaling computing.OpenAI plans to partner with TSMC and Broadcom to launch its first in-house AI chip by 2026.Major inference chip makers like Groq, Sambanova and Cerebras have improved performance.NVIDIA is working with its suppliers to cool overheating racks.