AMD jumps on report Microsoft is collaborating on AI chip push


Lisa Su, CEO, AMD

Scott Millin | cnbc

amd Shares soared 12% on Thursday following a media report claiming a deal with the chipmaker Microsoft On a new artificial-intelligence processor. AMD stock was up 6% at the end of the day’s trading session.

Microsoft’s top competitor in the cloud infrastructure market, Amazon And Alphabet, Both have their own special chips that software developers can use to train models. But Microsoft has not released any special purpose AI chip till date. It’s codenamed Athena, in development in partnership with AMD, and will be able to train models and make inferences on new data, Bloomberg reported.

NVIDIA Shares declined following the report. Like other big technology companies, Microsoft relies on Nvidia graphics processing units to run AI models.

AMD and Microsoft both declined to comment on the report.

The need for silicon that handles AI has become more important than ever in the past six months, particularly at Microsoft, which provided computing resources for startup OpenAI’s viral ChatGPT chatbot. The technology requires thousands of Nvidia GPUs, Microsoft has said,

But Microsoft also needs the chips to run its own applications that are based on the GPT-4 larger language model at the heart of ChatGPT. Large language models belong to a class of generative AI technologies that can create text-like content in response to human input. Microsoft’s Bing Chatbot GPT-4 incorporates the model, and the software maker has announced security and productivity programs that will use it as well.

AMD is already a chip supplier to Microsoft as well as other cloud providers, such as Google and Oracle,

Read the full Bloomberg report here.

Correction: Removed prior reference to funding from Microsoft.

This is breaking news. Please check back for updates.

Source link