MS unveils first 'AI chip'... Competing with Nvidia

Microsoft (MS) has developed and unveiled its own AI chips for artificial intelligence (AI) technology and cloud services for the first time.

On the 15th (local time), MS showcased its self-developed AI graphics processing unit (GPU) 'Mia 100' and high-performance computing central processing unit (CPU) 'Cobalt 100' at the company's annual developer conference, the Ignite Conference.

'Mia 100' is an AI semiconductor similar in form to NVIDIA's GPUs. It is designed to operate data center servers that train and run large language models (LLMs), the fundamental technology behind generative AI.

MS stated that it collaborated with OpenAI, the developer of ChatGPT, to develop this chip. Sam Altman, CEO of OpenAI, said, "We refined and tested the Mia chip with our (AI) models in collaboration with MS," adding, "Now, through Mia, AI-based services optimized on Azure (MS's cloud service) will be able to train higher-performance models and offer them to customers at more affordable prices."

However, MS announced that it currently has no plans to sell the 'Mia 100' externally. The Mia 100 will be used to enhance the performance of its own AI-based software products and Azure cloud services.

Earlier, MS released an updated version of the Windows 11 PC operating system equipped with the AI chatbot 'Copilot' at the end of last month, and earlier this month, launched 'M365 Copilot,' a $30-per-month office software subscription featuring generative AI.

Major foreign media outlets such as CNBC have predicted that MS's 'Mia 100' could compete with NVIDIA's GPU products. Currently, NVIDIA holds more than 80% of the global AI chip market required for generative AI training, and supply is significantly short of demand.

On the same day, MS also unveiled the 'Cobalt 100,' a CPU designed to operate with low power consumption. The Cobalt 100 is a CPU based on the Arm architecture, designed to deliver higher efficiency and performance in cloud services.

Satya Nadella, CEO of MS, said, "This 128-core chip is the fastest among all cloud providers," adding, "This chip is already powering some MS services, and after full deployment, it will be sold to customers next year."

Foreign media expect this product to compete with chips such as Amazon Web Services' (AWS) 'Graviton' series for high-performance computing and Intel processor products.

According to Bloomberg News, both chips developed by MS are manufactured by Taiwan Semiconductor Manufacturing Company (TSMC).

While continuing its own chip development, MS also announced plans to introduce the latest GPU products H200 and MI300X, developed by NVIDIA and AMD respectively, into its AI and cloud services next year.

This content was produced with the assistance of AI translation services.