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Microsoft to collaborate with AMD on AI Chip expansion!

Microsoft Corp. is working with Advanced Micro Devices Inc. on the chipmaker’s expansion into artificial intelligence processors, according to people with knowledge of the situation, part of a multipronged strategy to secure more of the highly coveted components.

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AMD on AI chips

Software maker will help boost AMD’s supply of in-demand parts.Microsoft also working with AMD on a homegrown AI processor

The companies are teaming up to offer an alternative to Nvidia Corp., which dominates the market for AI-capable chips called graphics processing units, said the people, who asked not to be identified because the matter is private.

The software giant is providing financial support to bolster AMD’s efforts, and working with the chipmaker on a homegrown Microsoft processor for AI workloads, code-named Athena.

AMD shares jumped more than 6.5% on Thursday, and Microsoft gained about 1%.

Representatives from both companies declined to comment. Nvidia stock declined 1.9%.

The arrangement is part of a broader rush to augment AI processing power, which is in great demand after the explosion of chatbots like ChatGPT and other services based on the technology.

Microsoft is both a top provider of cloud-computing services and a driving force of AI use. The company has pumped $10 billion into ChatGPT maker OpenAI, and has vowed to add such features to its entire software lineup.


Image: AMD