Microsoft plans to launch an AI chip similar to the Nvidia GPU

Microsoft has been investing in artificial intelligence to generate innovations. During the launch of its Surface products, the company introduced several AI innovations that surprised and amazed the audience in equal measure. It is now rumoured that Microsoft could introduce a new artificial intelligence chip to reduce costs and dependence on Nvidia. Nvidia technology has been in high demand. However, more is needed. Therefore, the new AI chip could well underpin Microsoft's upcoming devices.

Microsoft's new AI chip

According to The Information report (via GizmoChina), Microsoft plans to introduce a new AI chip codenamed 'Athena.' The new chip will be launched to reduce Microsoft's dependence on Nvidia technology. The upcoming product is expected to compete with NVIDIA's H100 GPU. The GPU is currently used by Microsoft and many other cloud providers. The technology is integrated into large language models (LLM) and artificial intelligence software.

The chip is rumoured to be unveiled at Microsoft's Ignite conference, scheduled for November 14-17. The change was decided due to the growing demand for Nvidia GPUs and the supply shortage. Furthermore, the need for artificial intelligence is growing, and the initiative can open new doors for Microsoft. OpenAI, with Microsoft as a sponsor, is also rumoured to explore developing its own AI chips.

The development of a new AI chip could also allow Microsoft to reduce its costs and improve the chip performance of its cloud services. Some reports have also indicated that Google and Amazon are also working on developing their own AI chips, which may contribute to the growth of the AI chips market. The company has yet to confirm the announcement date of the new AI chip. However, it may be launched next month.