Microsoft and AMD are working on an artificial intelligence (AI) chip with the code name Athena.
Advanced Micro Devices Inc. (NASDAQ: AMD) saw its shares gain on Thursday following a report that it has collaborated with Microsoft Corporation (NASDAQ: MSFT) on the development of an artificial intelligence (AI) chip. AMD shares closed at $86.61 on Thursday, up 6.11 percent from the day’s opening price, according to the latest stock market data from TradingView. As a result, AMD shares traded around $87.23, up nearly 33.72 percent YTD during Thursday’s after-hours session.
Reportedly, Microsoft is funding AMD through an initiative to develop a super-efficient special-purpose artificial intelligence (AI) chip. Bloomberg noted Microsoft and AMD are working on an artificial intelligence (AI) chip with the code name Athena.
AMD and Microsoft on AI Development
The emergence of artificial intelligence has significantly disrupted the Web 2 industry, with companies such as Chegg reporting low customer turnover. Already, OpenAI’s ChatGPT-4 has attracted global attention thus prompting Silicon Valley tech giants to focus on AI and cloud network development. Furthermore, OpenAI has become a billion-dollar company, which is currently valued at around $29 billion.
Currently, Microsoft is working closely with OpenAI through Azure AI supercomputing technologies. This collaboration aims to broaden the use of artificial intelligence as they incorporate larger programming language models. In the meantime, Microsoft and its partners continue to work around the clock to meet the high demand for advanced AI infrastructure and training models.
“This infrastructure includes thousands of NVIDIA AI-optimized GPUs linked together in a high-throughput, low-latency network based on NVIDIA Quantum InfiniBand communications for high-performance computing,” Microsoft noted,
On the other hand, Advanced Micro Devices is reportedly working with other tech giants Google And Oracle Corporation (NYSE:ORCL) on similar AI chips. Furthermore, Web3 technologies are to be developed through artificial intelligence (AI) driven infrastructure.
According to Nidhi Chappell, Microsoft’s product lead for Azure high-performance computing, the key to AI success is understanding how to interconnect high-throughput GPUs over low-latency InfiniBand networks. In addition, training large language models requires thousands of GPUs working together on a large scale with high optimization.
“It’s not something that you buy a whole bunch of GPUs, hook them together and they start working together. There’s a lot of system-level optimization to get the best performance, and it’s the experience of several generations.” comes with,” she said.
market Outlook
Artificial intelligence is highly needed, especially in the rebuilding of most global economies after the COVID-19 downtime. Furthermore, most of the industries have expanded through online businesses and there is a need for fast and efficient cloud systems that meet the high demand. As a result, tech companies are competing to create the next generation of AI chips to conquer more global markets.

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