MICROSOFT – CHIP FOR DATA CENTER

Microsoft is reportedly gearing up to unveil its first processor designed for artificial intelligence workloads, aiming to reduce its dependence on Nvidia, a major supplier of GPUs used for AI tasks. The chip is expected to be introduced at the company’s annual developers’ conference.

This move comes as Microsoft acknowledges constraints in accessing GPUs, which could potentially affect its ability to generate AI-related revenue streams. By developing its own GPUs, Microsoft aims to mitigate this risk, although it has publicly stated its intention to continue purchasing Nvidia GPUs.

The Microsoft processor is primarily intended for data center servers and AI features within its productivity applications. Small groups of employees, including those from Microsoft and OpenAI, have reportedly been testing the chips.

OpenAI, which received substantial financial backing from Microsoft, is also exploring the possibility of creating its own AI chips and has evaluated potential acquisition targets. This development, code-named Project Athena, follows Microsoft’s collaboration with AMD to enhance its AI workload chips.

If Microsoft successfully launches its own AI chip, it will join the ranks of tech giants like Amazon and Google, both of which have developed their own AI chips, Inferentia and TPU, respectively. As Microsoft works to reduce its reliance on external GPU suppliers, this move could significantly impact the landscape of AI hardware in the tech industry.