AMD

Microsoft and AMD have recently announced a partnership to develop new AI hardware that could dethrone Nvidia as the reigning king of the market. This partnership aims to create hardware that will bring advanced artificial intelligence capabilities to personal computers and data centers, with the goal of providing more efficient and cost-effective solutions for AI workloads.

The move marks a significant shift in the market and could pose a major challenge to Nvidia’s current dominance in the AI hardware space.

Microsoft and AMD Collaborate to Challenge Nvidia’s Dominance in AI Hardware Market

Nvidia has played a crucial role in fueling the current growth of AI products by dominating the workplace and consumer graphics markets, as well as offering well-known CUDA libraries and Tensor cores for accelerating artificial intelligence.

However, the lack of an adequate substitute has become a concern for businesses like Microsoft that rely on Nvidia’s expensive processors to power the many AI services offered through its Azure Cloud.

According to rumors, two major tech companies, Microsoft and AMD, have joined forces to support AMD’s entry into the artificial intelligence CPU market.

A Bloomberg story reveals that Microsoft is providing technical resources to enhance AMD’s advancements as the two companies team up to challenge Nvidia and its 80% share of the market for AI processors.

According to Bloomberg, AMD and Microsoft have joined forces to challenge Nvidia’s domination of the artificial intelligence (AI) hardware market. Nvidia is currently responsible for the majority of AI processors in use due to its strong foothold in the consumer graphics and workplace markets, as well as its well-known CUDA libraries and Tensor cores.

However, the lack of suitable alternatives has become a concern for businesses such as Microsoft that rely on Nvidia’s costly processors to power their AI services through the Azure Cloud.

In response, Microsoft is reportedly providing technical assistance to AMD in the development of its custom AI processors, known as Athena, as the two companies team up to take on Nvidia’s 80% market share.

The project, which involves approximately 300 workers from Microsoft’s silicon group and has seen nearly $2 billion invested in its development, is not associated with AMD, according to a Microsoft representative.

The development of more competitive AI-accelerating hardware could result in server cost savings for Microsoft as it seeks to incorporate AI capabilities into more of its products, such as the upcoming private version of ChatGPT, which is expected to cost businesses over ten times the regular version’s price.

The AI industry is experiencing increasing demand, prompting AMD to position itself better. According to CEO Lisa Su, AMD is in the early stages of the AI computing era with higher growth and adoption rates.

The company is confident about its upcoming Instinct MI300 data center chip, which can handle HPC, AI, and supercomputer workloads.

Furthermore, due to the ongoing shortage of specialized GPU chips, Microsoft plans to secure additional Nvidia processors. However, Nvidia has a monopoly on the supply of this hardware, which is why big tech companies like AMD and Microsoft want to develop their in-house AI chips.

Following in the footsteps of Google, which developed its own Tensor Processing Unit chip, Amazon also created its own Trainium AI chips to train AI models.

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