ALBAWABA - Microsoft is gearing up to reveal its artificial intelligence chips next month in a move aimed at cost reduction.
The company, co-founded by billionaire Bill Gates, has reportedly been developing these chips over several years.
Microsoft's chips are expected to target data center servers and AI-related features within the company's applications.
Microsoft is set to unveil its new chips at its annual developer conference.
These chips may help Microsoft reduce its reliance on Nvidia, which supplies most of the graphics processing units needed for its language model training and other AI-related work.
UBS noted in an August memo that Microsoft's limitation on the number of GPUs it can access is a real issue and could impact its ability to generate AI-related revenue streams next year.
The bank emphasized that if Microsoft can successfully create its own chips, it could mitigate these risks.
