Microsoft revealed that it plans to offer an artificial intelligence chip platform from AMD to its cloud computing clients, creating a new market that will compete with Nvidia’s components.
Microsoft (MSFT.O) announced on Thursday that it intends to provide its cloud computing clients with an artificial intelligence chip platform from AMD (AMD.O), opening a new tab that will rival Nvidia’s (NVDA.O) components. Further information will be provided at Microsoft’s Build developer conference the following week.
During the conference, a sneak peek at the upcoming Cobalt 100 custom CPUs will also be unveiled.
Microsoft will sell clusters of the company’s flagship MI300X AI chips from Advanced Micro Devices via its Azure cloud computing service. With the launch of the new Tab H100 series of potent graphics processing units (GPUs), which are in great demand but dominate the data center chip market for AI, they will provide their clients with an alternative to Nvidia’s (NVDA.O) products.
Because the data and computation cannot fit on a single chip, businesses usually need to connect, or cluster, numerous GPUs in order to execute apps or construct AI models.
AMD has stated that the chips are strong enough to operate and train massive AI models, and the company anticipates $4 billion in sales from AI chips this year.
In addition to Nvidia’s premium AI chips, Microsoft’s cloud computing division offers access to Maia, an AI chip developed in-house.
Separately, the business said that the Cobalt 100 CPUs, which Microsoft intends to demonstrate next week, perform 40% better than rival processors built using technology from Arm Holdings. Some have started using Snowflake (SNOW.N), which opens a new tab.
The Cobalt chips, which were unveiled in November, are being tested to power Teams, Microsoft’s business messaging app, and are positioned to rival Amazon.com’s (AMZN.O.) in-house Graviton CPUs.
Also read: Unveiling the Ethical Imperatives: Navigating the Intersection of AI and Cybersecurity
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