Microsoft introduced its own custom AI chip to train large language models, joining other big tech wigs and bringing in-house techs amid the high cost of delivering AI services.
During its Ignite conference in Seattle, the company unveiled two chips, the Maia 100 and the Cobalt 100 Arm chips.
Maia is expected to equal Nvidia's in-demand AI graphics processing unit, while Cobalt will be used for general computing tasks and could compete with Intel processors.
The Maia chip is a collaborative product with ChatGPT creator OpenAI. Microsoft has had a "multiyear, multibillion-dollar investment" deal with OpenAI since 2019.
Microsoft, however, said they do not plan to sell the chips publicly and instead aimed to power its subscription software services, including its Azure cloud computing service.
The chips are set to roll out next year to Microsoft's data centers.
High Demand, High Price for AI GPU Models
Microsoft's announcement is directed to the increasing demand for high-end graphics units that continue to balloon in price every year.
There is a very high demand for GPUs that reached $40,000 apiece on some online markets, The Verge reported.
Nvidia, the leading supplier of GPUs, has been experiencing AI-integrated unit shortage and the next supply ease will not come until the second quarter of 2024.
Microsoft and other tech giants like Alphabet, Google's parent company, have been struggling to meet the high cost of AI services, which is 10 times larger than the conventional services.
The company intends the launch of the chips to help "meet the exploding demand for efficient, scalable, and sustainable" computing power.
Use of AI Graphics Unit to Big Tech Companies
Tech giant like Microsoft uses AI-powered graphics units to handle compute and graphics-intensive workloads for its virtual cloud services, primarily the Azure project.
With Azure AI Services, other companies can enhance their products' capabilities by integrating new AI features. This includes natural language processing, computer vision, speech recognition, and sentiment analysis skills.
Azure AI also has access to OpenAI's models, allowing it to offer services related to management, security, and reliability.
Microsoft expects Azure to generate more than 10 billion dollars of revenue each year.
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