According to a report from The Information, Microsoft is poised to introduce its inaugural artificial intelligence (AI) chip next month. This move is aimed at reducing Microsoft’s dependency on Nvidia’s high-demand, limited-supply graphics processing unit (GPU) chips.
Known as Athena, Microsoft’s AI chip is specifically engineered for data center servers. It is anticipated to enter the competition with Nvidia’s flagship H100 GPU, currently employed by Microsoft and other cloud providers to empower large language models (LLMs) and various other AI applications.
The Information initially reported about Athena in April of this year, and the chip is set to make its official debut at Microsoft’s Ignite conference, scheduled for November 14-17.
The news comes at a time of surging demand for AI chips, with a particular emphasis on the substantial computing power required for training and operating large language models (LLMs). Consequently, this surge in demand has led to a scarcity of AI chips, resulting in escalating prices.
In addition to this, OpenAI, with Microsoft’s support, is reportedly exploring the prospect of creating its own AI chips. This strategic move aims to reduce reliance on Nvidia and other chip manufacturers.
Beyond mitigating dependence, it also holds the potential to bolster cost-efficiency and enhance the performance of Microsoft’s cloud services. Notably, Google and Amazon are also actively pursuing the development of their proprietary AI chips, signaling a forthcoming rapid expansion in the AI chip market.
