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Microsoft launches AI chips as developers seek Nvidia alternatives

New processors designed for OpenAI’s GPT models will be deployed in its Azure data centres next year

Microsoft has unveiled its first bespoke chips for artificial intelligence in the cloud, as developers clamour for alternative suppliers to Nvidia, which dominates the market for AI processors.

Two new processors — a general-purpose chip based on Arm designs called Cobalt and a specialised AI “accelerator” named Maia — will be deployed in Microsoft’s Azure data centres next year, supporting its services including OpenAI and Copilot.

Microsoft’s entry to the AI processor market, announced at its Ignite developer conference on Wednesday, follows renewed efforts by Intel and AMD to compete with Nvidia, which holds a virtual monopoly on the high-powered graphics processing units, or GPUs, needed to train large AI models.

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