Microsoft may introduce AI chip similar to Nvidia GPU

Microsoft may introduce its first AI chip that will cut costs. Know what Microsoft is planning.

The new AI chip will reduce Microsoft's dependence on Nvidia's technology. Check details here. (AP)

Microsoft has been investing in artificial intelligence to bring out new innovations. During its surface products launch, the company introduced various AI innovations that shocked and awed the audience in equal measure. Now, it is rumoured that Microsoft could introduce a new AI chip that may cut costs and overall dependence on Nvidia too. The Nvidia technology has been in high demand however, the supply is falling short. Therefore, the new AI chip may well back Microsoft's upcoming devices.

Microsoft's new AI chip

According to The Information report (via GizmoChina), Microsoft is planning to introduce a new AI chip which has been named 'Athena' in code. The new chip will be introduced to reduce Microsoft's dependency on Nvidia technology. It is expected that the upcoming product will compete with NVIDIA's H100 GPU. The GPU is currently being used by Microsoft and many other cloud providers. The technology is being integrated into large language models (LLMs) and artificial intelligence software.

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The chip is rumoured to be introduced at Microsoft's Ignite conference which is scheduled for November 14 to November 17. The change has been decided due to the growing demand for Nvidia GPU and the shortage in supply. Additionally, the demand for artificial intelligence is also growing and the initiative may open new doors for Microsoft. It's been rumoured that OpenAI, with Microsoft as its supporter, is also exploring the idea of developing its own AI chips.

The development of a new AI chip might also enable Microsoft to lower its costs and enhance the chip performance of its cloud services. It has also been indicated by some reports that Google and Amazon are also working on developing their own AI chips, which may well contribute to the growth of the AI chip market.

The announcement date of the new AI chip has not been confirmed by the company yet, however, it may be launched next month.

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