Microsoft to unveil first AI chip next month to cut Nvidia reliance

Next month, Microsoft is expected to introduce its first artificial intelligence (AI) chip, according to Tech magazine. The move is to reduce Microsoft's reliance on Nvidia's graphics processing unit (GPU) chips, which have been in short supply and high demand.

The Athena AI processor from Microsoft is designed for use in data center servers. The AI is to compete with Nvidia's flagship H100 GPU, which currently powers large language models (LLMs) and other AI applications used by Microsoft and other cloud providers.

Athena was the first to report the Information in April of this year. The chip is expected to be unveiled at the Ignite conference, which Microsoft will host from November 14 to 17.

The creation of Athena aligns with the growing demand for AI processors. LLMs, in particular, require significant computing power for training and operation. Due to the limited availability of AI chips, costs have risen.

Reports suggest that OpenAI, supported by Microsoft, is exploring the possibility of developing its own AI processors. They aim to reduce their reliance on Nvidia and other chipmakers by creating their own AI chip. These could also help Microsoft reduce costs and improve the functionality of its cloud services. The fact that Google and Amazon are also developing their own AI chips indicates that the market for AI chips is poised for rapid expansion.