Microsoft, AMD Reportedly Working Together on AI Technology

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Microsoft and AMD Team Up 

NVIDIA dominates the graphics market. However, AMD also offers high-performance graphics cards that are also popular among gamers and other users. 

But NVIDIA is known for its powerful graphics processing units and has a significant market share in the gaming, professional visualization, and AI markets. Many high-end gaming laptops and desktops feature NVIDIA GPUs. The company’s technology is also widely used in data centers for AI and machine learning workloads. 

Microsoft uses NVIDIA GPUs in its Azure data centers. But it is also working with AMD to boost the AI capabilities of its GPUs. 

 Bloomberg reported:

“The software giant is providing support to bolster AMD’s efforts, including engineering resources, and working with the chipmaker on a homegrown Microsoft processor for AI workloads, code-named Athena, the people said.”

But Microsoft denied that AMD was involved in the development of Athena. 

Having a more competitive market is advantageous for Microsoft because it can significantly save on server costs considering that it is building AI features into most of its products. 

It is reported that the Windows maker is working on a ChatGPT private version for businesses. The cost could be 10 times more than running a regular version of ChatGPT. If the server hardware needed to run AI models is cheaper, then the company could reduce its costs and prices. It can also make the products more appealing. 

This is not the first time that the two companies collaborated. Ryzen processors have been used in Microsoft’s old Surface PCs but not in the recent Surface devices. 

So, is it time to buy AMD stock? 

Because of AI’s popularity, the mere mention of it can move a tech stock. Microsoft stock trades quite well these days. It has consolidated gains and a nice increase in earnings. With its action on AI, it is pushing above its previous highs. 

On Wednesday, AMD’s stock dropped but it gained a 6.1% gain the following day. On Friday, its shares increased almost 4%.

AMD’s stock price has performed well in recent years. It is driven by the company’s strong product portfolio and growth prospects. Then again, just like any stock, AMD’s performance is subject to market fluctuations. And even though it is partnering with Microsoft to boost AI products, it is still not a guarantee. 

Challenging Apple Silicon

On the other hand, Microsoft is challenging Apple Silicon. Microsoft’s SoCs will be based on Arm architecture. The development is more exciting because it is working in paralleled to ensure Windows 12 will be optimized for Arm. 

Information about the Arm chip is coming from various sources. But a few job listings are providing clues. 

Windows 12 would benefit from having in-house ARM chips considering that it is offering more AI features. Some are saying that this is great news for Apple because it means that more ARM optimize software will be developed. 

As a result, cross-platform support will be a lot easier. Also, if every company would stick to ARM chips, it might help save energy or electricity. 

It is indeed a confirmation that Apple chose the right path.

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Author: Jane Danes

Jane has a lifelong passion for writing. As a blogger, she loves writing breaking technology news and top headlines about gadgets, content marketing and online entrepreneurship and all things about social media. She also has a slight addiction to pizza and coffee.

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