A worsening shortage of AI chips is prompting major cloud companies to allocate GPU inventory first to internal demand and large customers, increasing pressure on AI startups. Some startups are said to be paying higher costs to access GPU servers. The Information reported that even heavily funded startups are affected, as demand from major AI developers rises and cloud providers limit capacity for smaller clients while raising fees for Nvidia GPU servers.

Customer-service AI agent startup Sierra has acquired French startup Fragment, TechCrunch reported on April 23 local time. Fragment helps companies integrate AI into their work flows. The terms of the deal were not disclosed. PitchBook estimates Fragment raised about $2 million in a seed round. The transaction is Sierra’s third disclosed acquisition. Sierra also bought Japan’s Opera Tech and voice-agent company Receptive AI in late March.