Microsoft is likely to unveil its first artificial intelligence (AI) chip next month, according to a report by tech publication The Information. The move is seen as a bid to reduce Microsoft’s reliance on Nvidia’s graphics processing unit (GPU) chips, which are in high demand and have been in short supply.

Microsoft’s AI chip, codenamed Athena, is designed for data center server. It is expected to compete with NVIDIA’s flagship H100 GPU, which are currently used by Microsoft and other cloud providers to power large language models (LLMs) and other AI applications.

The Information first reported on Athena in April of this year. The chip is expected to be unveiled at Microsoft’s Ignite conference which is scheduled to take place from November 14-17.

The development of Athena comes at a time when there is a growing demand for AI chips. LLMs, in particular, require a lot of computing power to train and run. As a result, there is a shortage of AI chips, which has driven up prices.

Microsoft-backed OpenAI is also reportedly exploring the possibility of developing its own AI chips. By developing its own AI chip, they are hoping to reduce its reliance on Nvidia and other chipmakers. This could also help Microsoft to cut costs and improve the performance of its cloud services. Google and Amazon are also developing their own AI chips, suggesting that the AI chip market is set to grow rapidly.

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