Microsoft may debut its first AI chip at Ignite 2023 to mitigate cost

An AI generated image of a processor with a Microsoft logo on it
(Image credit: Windows Central / Bing Image Creator)

What you need to know

  • Microsoft's annual developer conference, Ignite 2023, will take place in November.
  • Sources reveal that the company might unveil its first dedicated artificial intelligence chip during the event.
  • The chip will be used in Microsoft's data center servers and also to power AI capabilities across its productivity apps.
  • NVIDIA is unable to meet the high demand for GPUs, which could potentially impact Microsoft's ventures in AI technology, affecting profitability.

We're edging closer to yet another Microsoft developer conference, Ignite 2023. The in-person event will take place in Seattle from November 14 through to November 17, it's already sold out. However, you can still catch the keynotes online from November 15 to November 16, as registration is still open.  

Microsoft has already provided the complete rundown of the sessions that will take place during the event, including a dedicated interactive session highlighting its latest AI innovation and more.

Since Microsoft extended its partnership with OpenAI by making a multi-billion dollar investment, the company has been fully focused on AI technology and its advances. And now, a report by The Information reveals that Microsoft might debut its first dedicated artificial intelligence chip at Ignite 2023. 

NVIDIA GPU shortage

With the emergence of AI and more organizations tapping into the technology, there's been an increased reliance and dependence on NVIDIA for GPUs used for AI advances and training large language models like Bing Chat and ChatGPT.

To this end, it seems that NVIDIA is up to its neck and is unable to meet the high demand for GPUs, hence the shortage in supply. Microsoft is aware of this issue, which is why it has been developing its own AI "for years" now.

NVIDIA's inability to meet the high demand for GPUs could negatively impact Microsoft's AI advances, ultimately limiting its chances of generating revenue from the technology.

The Information further highlighted that Microsoft will continue to purchase NVIDIA GPUs and that the company's AI chip will be used in its data center servers and power AI capabilities across its productivity apps.

Microsoft using its own AI chip could potentially make its advances in the technology more profitable, while simultaneously allowing it to compete on an even playing field with companies like Amazon and Google, which use their own AI chips.

Kevin Okemwa

Kevin Okemwa is a seasoned tech journalist based in Nairobi, Kenya with lots of experience covering the latest trends and developments in the industry at Windows Central. With a passion for innovation and a keen eye for detail, he has written for leading publications such as OnMSFT, MakeUseOf, and Windows Report, providing insightful analysis and breaking news on everything revolving around the Microsoft ecosystem. You'll also catch him occasionally contributing at iMore about Apple and AI. While AFK and not busy following the ever-emerging trends in tech, you can find him exploring the world or listening to music.

  • fdruid
    Man, honestly, why is everyone using GPUs for other uses than graphic displays? Just build cheaper dedicated coprocessor chips and use it for that. Microsoft is doing the right thing, but out of Nvidia's inability to supply the gaming industry, that awful crypto mining thing, and now AI servers? Feels absolutely wrong.