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Microsoft designing its own AI chip

Photo: Microsoft

According to two sources, Microsoft Corp. (MSFT.O) is building an artificial intelligence processor called “Athena” to power AI chatbots like ChatGPT, the Information said on Tuesday.

The article said a small group of Microsoft and OpenAI employees is testing the chip, which the company, an early backer of ChatGPT-owner OpenAI, has been working on since 2019.

According to the study, the chips will train large-language models and support inference. Generative AI like ChatGPT must process enormous input quantities, spot patterns, and create new outputs to resemble human interaction.

According to the source, Microsoft hopes the chip would outperform those from other vendors, saving it time and money on its expensive AI projects. For example, Amazon and Google also make AI processors.

Nvidia (NVDA.O) leads this market. Microsoft and Nvidia did not reply to requests for comment.

The article suggested Microsoft is accelerating the distribution after ChatGPT’s success. In cooperation with OpenAI, Windows released Bing AI, an AI-powered search engine, earlier this year to compete with Google.

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