Microsoft Builds Custom AI Chip and Arm-based CPU for Azure Data Centers

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Microsoft Builds Custom AI Chip and Arm-based CPU for Azure Data Centers
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Microsoft has developed its own custom AI chip and Arm-based CPU to power its Azure data centers, reducing reliance on Nvidia. The Azure Maia AI chip and Azure Cobalt CPU are set to launch in 2024, following high demand for Nvidia's H100 GPUs. Microsoft has a history in silicon development, having collaborated on chips for Xbox and Surface devices.

The rumors are true: Microsoft has built its own custom AI chip that can be used to train large language models and potentially avoid a costly reliance on Nvidia . Microsoft has also built its own Arm-based CPU for cloud workloads. Both custom silicon chips are designed to power its Azure data centers and ready the company and its enterprise customers for a future full of AI.

Microsoft’s Azure Maia AI chip and Arm-powered Azure Cobalt CPU are arriving in 2024, on the back of a surge in demand this year for Nvidia’s H100 GPUs that are widely used to train and operate generative image tools and large language models. There’s such high demand for these GPUs that some have even fetched more than $40,000 on eBay. “Microsoft actually has a long history in silicon development,” explains Rani Borkar, head of Azure hardware systems and infrastructure at Microsoft, in an interview with The Verge. Microsoft collaborated on silicon for the Xbox more than 20 years ago and has even co-engineered chips for its Surface devices. “These efforts are built on that experience,” says Borka

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