Microsoft offers cloud customers AMD alternative to Nvidia AI processors

FILE PHOTO: A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 25, 2024. REUTERS/Gonzalo Fuentes/File Photo

SAN FRANCISCO (Reuters) -Microsoft said on Thursday it plans to offer its cloud computing customers a platform of AMD artificial intelligence chips that will compete with components made by Nvidia, with details to be given at its Build developer conference next week.

It will also launch a preview of new Cobalt 100 custom processors at the conference.

Microsoft's clusters of Advanced Micro Devices' flagship MI300X AI chips will be sold through its Azure cloud computing service. They will give its customers an alternative to Nvidia's H100 family of powerful graphics processing units (GPUs) which dominate the data center chip market for AI but can be hard to obtain due to high demand.

To build AI models or run applications, companies typically must string together - or cluster - multiple GPUs because the data and computation will not fit on a single processor.

AMD, which expects $4 billion in AI chip revenue this year, has said the chips are powerful enough to train and run large AI models.

As well as Nvidia's top-shelf AI chips, Microsoft's cloud computing unit sells access to its own in-house AI chips called Maia.

Separately, the Cobalt 100 processors Microsoft plans to preview next week offer 40% better performance over other processors based on Arm Holdings' technology, the company said. Snowflake and others have begun to use them.

The Cobalt chips, which were announced in November, are being tested to power Teams, Microsoft's messaging tool for businesses, and positioned to compete with the in-house Graviton CPUs made by

Amazon said this week that social network Pinterest and fintech firm Robinhood Markets have started using its Graviton chips.

(Reporting by Max A. Cherney and Stephen Nellis in San Francisco; Editing by Edwina Gibbs)

Follow us on our official WhatsApp channel for breaking news alerts and key updates!


Next In Tech News

How to stop Instagram and Facebook using your data to train Meta’s AI
Apple forced to explain why it won’t add AI features to older iPhones
What if social networks really are the stuff of nightmares?
How to identify and manage the most power-hungry apps on your smartphone
Users will have control over generative AI in Windows
Will your device support Apple Intelligence?
Gamers really are better drivers, a new survey reveals
From schoolwork to relationship advice: why might young people use an AI chatbot?
OpenAI CEO says company could become benefit corporation- The Information
Google loses bid to end US antitrust case over digital advertising

Others Also Read