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Home Technology Semiconductors
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Microsoft Ventures into AI Chip Market with AMD Collaboration

byLiliana Vida
May 17, 2024
in Semiconductors
Reading Time: 1 min read
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Tech Giant to Introduce MI300X AI Chips via Azure Cloud Service, Challenging Nvidia Dominance

Microsoft (MSFT) unveiled plans to introduce a new line of artificial intelligence (AI) chips in collaboration with Advanced Micro Devices (AMD), marking its foray into the competitive AI chip market. The company aims to offer customers an alternative to Nvidia’s widely-used H100 GPUs, which currently dominate the data center chip market for AI applications.

The clusters of AMD’s flagship MI300X AI chips will be integrated into Microsoft’s Azure cloud computing service, providing users with enhanced performance and efficiency for building and running AI models. With the growing demand for AI-driven solutions, Microsoft’s initiative aims to address the challenges associated with obtaining Nvidia’s GPUs due to supply constraints.

Additionally, Microsoft will unveil a preview of its new Cobalt 100 custom processors at its upcoming Build developer conference. These processors, boasting 40% improved performance over existing Arm-based alternatives, signify Microsoft’s commitment to innovation in AI hardware solutions. Positioned to power its messaging tool, Teams, and compete with Amazon’s Graviton CPUs, the Cobalt chips represent a significant advancement in Microsoft’s hardware portfolio.

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