Microsoft offers cloud customers AMD alternative to Nvidia AI processors

Sanjana Dhar
Sanjana Dhar May 21, 2024
Updated 2024/05/21 at 4:20 PM

Microsoft is ready to expand its Cloud computing services to include AMD‘s MI300X AI chips to compete with Nvidia’s dominant GPUs. The tech giant will also preview its own Cobalt 100 processors which are designed to compete with Amazon’s Graviton CPUs.

On Thursday Microsoft announced that the company has plans to offer their clouds computing customers a platform of AMD artificial intelligence chips. This will compete with components made by Nvidia, with details to be given at its Build developer conference next week. A preview of new Cobalt 100 custom processes will also be launched at the Build Developer Conference.

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

For building AI models or running applications, multiple GPUs must be clustered or brought together typically by companies because the data and computation will not fit on a single processor. AMD expects four billion dollars in AI chip revenue this year. AMD said the chips are powerful enough to train and run large AI models.

The Cobalt chips were announced in November, last year and they are being tested to power Teams which is the messaging tool of Microsoft for businesses. They have been positioned to compete with the in-house Graviton CPUs made by Amazon.com.

 

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