Microsoft is launching its first AI chip

Aiming to reduce its dependency on Nvidia for artificial intelligence chips, Microsoft will soon release its very first chip.

Microsoft is launching its first AI chip

In a strategic move, Microsoft is poised to launch its inaugural artificial intelligence (AI) chip next month. This development is interpreted as an effort by the tech giant to lessen its dependency on Nvidia’s GPUs, which have been coveted assets in recent times due to high demand outpacing supply.

The AI chip from Microsoft's stables, baptized as Athena, is tailored for data center servers. Its design places it as a contender against Nvidia's eminent H100 GPU. Presently, companies like Microsoft harness the power of the H100 GPU to operationalize expansive language models and an array of AI tasks.

Earlier this year, details about Athena surfaced, indicating that Microsoft plans to showcase the chip at its Ignite conference set to unfold from November 14 to 17.

Microsoft is launching its first AI chip

The genesis of Athena is nestled in the burgeoning demand for AI chips. These chips, especially when dedicated to extensive language models, command formidable computational might for both training and deployment. This insatiable demand has inadvertently propelled a scarcity in AI chips, inflating their market prices.

Meanwhile, Microsoft-aligned OpenAI is reportedly deliberating on crafting its proprietary AI chips. By steering in this direction, the intention is to lessen the dependency on Nvidia and similar chip manufacturers. Such a venture could potentially trim expenditures for Microsoft and amplify the efficacy of its cloud offerings. In a parallel vein, tech behemoths like Google and Amazon are also venturing into the domain of AI chip creation, underscoring the potential surge in the AI chip market horizon.

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