Microsoft to compete with industry leaders NVIDIA in developing AI processors

Devesh Beri

Intel Vs. Nvidia Chipmakers Bing Image Creator

According to The Information, Microsoft is currently in the process of developing its own AI processors. These processors are specifically designed to handle tasks related to artificial intelligence and machine learning. The goal is to utilize them to power the company’s data centers and AI services.

There’s speculation that Microsoft might reveal details about its AI chip, possibly during its Ignite 2023 developer conference scheduled for November 14-17. This conference is a major event where Microsoft often makes significant product announcements.

At present, Microsoft relies on NVIDIA’s H100 GPUs for its data centers that support various AI services, such as the Bing Chat AI chatbot, Bing Image Creator, and Copilot assistant service. Its supply has been low since the pandemic until now.

There are several benefits to Microsoft developing its own AI processors and not relying on NVIDIA:

  • Reduced costs: Microsoft is a major customer of NVIDIA’s AI processors, so developing its chips could save the company a significant amount of money.
  • Improved performance: Microsoft can design its chips to be specifically optimized for its AI workloads, which could lead to improved performance and efficiency.
  • Greater control: By developing its chips, Microsoft has greater control over the design and manufacturing process. This could allow the company to bring new chips to market faster and respond more quickly to changes in customer demand.
  • Increased differentiation: Having its own AI processors could help Microsoft differentiate its products and services from those of its competitors.

The development of Microsoft’s AI chip, codenamed “Athena,” has been rumored for some time, with reports suggesting that Microsoft might have partnered with AMD to co-develop the chip. These reports also mentioned that Microsoft is providing financial support to AMD for its own AI chip development.

via Neowin