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- 🤖Microsoft and OpenAI are Launching their own Chips
Good morning and welcome to the latest edition of neonpulse!
Today we’ll be talking about AI Chips
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Microsoft and OpenAI are Launching their own Chips
Microsoft is on the brink of unveiling a new AI chip, developed under the secretive project named ‘Athena’. The revelation is expected to occur at the upcoming ‘Ignite’ event, an annual gathering that showcases Microsoft’s latest innovations.
The introduction of Athena is a pivotal moment for Microsoft. It signifies a step towards independence from NVIDIA’s GPUs, which have been integral in powering Microsoft’s extensive language models. NVIDIA, a dominant force in the semiconductor realm, has set the industry standard with its high-performance, yet costly, GPUs.
Athena’s inception can be traced back to 2019, a year marked by Microsoft’s significant $1 billion investment in OpenAI, the creators of ChatGPT. The chip is engineered to optimize the performance of data center servers, essential for the training and operation of expansive language models. This development could potentially accelerate the growth of Azure, Microsoft’s cloud service, offering enhanced efficiency and reduced operational costs.
The demand for NVIDIA’s GPUs has always outweighed its supply, exacerbated by a global chip shortage. OpenAI, too, has felt the pinch, relying on 10,000 NVIDIA GPUs integrated into a Microsoft supercomputer to power ChatGPT. As OpenAI transitions ChatGPT to a commercial model, the need for GPUs is projected to triple, amplifying the urgency for a sustainable solution.
OpenAI is reportedly exploring avenues to develop its own AI chip or potentially acquire a chipmaking entity, a move prompted by the escalating costs and scarcity of GPUs. A projection by Reuters highlighted the financial implications for OpenAI if ChatGPT’s query volume escalates to a fraction of Google search’s scale - a staggering $48.1 billion initial investment followed by an annual $16 billion for operational sustainability.
NVIDIA, amidst the supply constraints, has announced the launch of GH200, a new chip slated for release in 2024. Boasting triple the memory capacity of its predecessor, the H100, the GH200 is anticipated to alleviate some challenges posed by the ongoing GPU shortage.
Microsoft’s ‘Ignite’ event, scheduled from November 14 to 17 in Seattle, promises to be a platform where these developments and more will be unveiled, offering insights into the future trajectory of AI, chip development, and the unfolding dynamics of the semiconductor industry.
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