Microsoft & AMD Set To Challenge NVIDIA in AI Chip Manufacturing

Yana Khare 10 May, 2023 • 3 min read
NVIDIA Corp. has joined with Microsoft Corp. and Advanced Micro Devices Inc. (AMD) to develop a rival to its graphics processing units (GPUs) | AI-capable processor

The market leader in AI-capable processors, NVIDIA Corp., has joined with Microsoft Corp. and Advanced Micro Devices Inc. (AMD) to develop a rival to its graphics processing units (GPUs). The action is part of a more significant initiative to increase AI processing capacity. It is crucial, given the popularity of chatbots and other services like ChatGPT.

Also Read: Revolutionizing Computer Graphics: NVIDIA to Unveil 20 AI Research Papers at SIGGRAPH 2023

Partnership with AMD

According to sources, Microsoft supports AMD’s efforts by offering technical resources and collaborating with the chipmaker on a proprietary Microsoft processor for AI workloads. The company is said to have invested roughly $2 billion in its chip efforts, and several hundred workers are working on the Athena project.

Also Read: Microsoft Building AI Chip’ Athena’ to Boost ChatGPT and AI Tech

Microsoft’s Deepening Involvement in the Chip Industry

Microsoft's Deepening Involvement in the Chip Industry

Microsoft’s growing participation in the semiconductor sector reflects its role as a leading provider of cloud computing services and a pioneer in using AI. It aims to integrate AI elements across its whole product range and has invested $10 billion into OpenAI, which makes ChatGPT.

Impact on Microsoft’s Programs

Microsoft’s partnership with OpenAI necessitates more processing capacity than the corporation anticipated when it placed chip orders and built up data centers. Businesses interested in integrating OpenAI’s ChatGPT service into their goods or internal programs have expressed interest.

At the same time, Microsoft has unveiled a chat-based Bing and new AI-enhanced Office features. NVIDIA’s expensive and potent processors are necessary for all those AI applications operated in Microsoft’s Azure cloud.

Also Read: Microsoft Hits Another Blow to Google With Massive Update to Bing Chat

Challenges in Developing an Alternative to NVIDIA’s Lineup

Creating a selection that competes with NVIDIA’s won’t be easy. Chips, a programming language, networking devices, and servers are just a few of the hardware and software components NVIDIA delivers in a coordinated package that enables users to enhance their capabilities quickly. This is one of the factors contributing to NVIDIA’s rise to prominence in the AI chip industry.

Competition from Other Cloud Rivals

But Microsoft isn’t the only company attempting to create its AI-capable processors. Amazon, a competitor in the cloud space, bought Annapurna Labs in 2016 and has since made two separate AI processors. Google, a subsidiary of Alphabet Inc., also has its training chip.

Also Read: Google VS Microsoft: The Battle of AI Innovation

Microsoft’s Continued Collaboration with NVIDIA

Microsoft wants to continue collaborating closely with NVIDIA, whose processors power AI systems throughout training and execution. Additionally, it’s looking for methods to obtain more NVIDIA chips, highlighting the critical scarcity that Microsoft and others are experiencing.

Our Say

Microsoft’s partnership with AMD to provide a graphics processing unit (GPU) alternative to NVIDIA’s GPUs demonstrates its dedication to boosting AI processing capacity. With the popularity of ChatGPT and other chatbots, demand for these highly sought-after components has skyrocketed. Thus,  necessitating the urgent necessity for NVIDIA’s competitors. Although creating an internal AI-capable processor will be difficult, Microsoft is pursuing this objective with cloud rivals Amazon and Google. The action highlights its growing participation in the semiconductor sector as it works to acquire more of the parts needed to power its cloud computing services and artificial intelligence (AI) initiatives.
 Also Read: How Did A Taiwanese Company Become The Backbone Of Modern AI?
Yana Khare 10 May 2023

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