Report: Microsoft is Partnering with AMD on Athena AI Chipset

According to Bloomberg (paywalled), Microsoft is helping finance AMD's expansion into AI chips. Meanwhile, AMD is working with Microsoft to create an in-house chipset, codenamed Athena, for the software giant's data centers. Paul Thurrott reports: Athena is designed as a cost-effective replacement for AI chipsets from Nvidia, which currently dominates this market. And it comes with newfound urgency as Microsoft's ChatGPT-powered Bing chatbot workloads are incredibly expensive using third-party chips. With Microsoft planning to expand its use of AI dramatically this year, it needs a cheaper alternative. Microsoft's secretive hardware efforts also come amid a period of Big Tech layoffs. But the firm's new Microsoft Silicon business, led by former Intel executive Rani Borkar, is growing and now has almost 1,000 employees, several hundred of which are working on Athena. The software giant has invested about $2 billion on this effort so far, Bloomberg says. (And that's above the $11 billion it's invested in ChatGPT maker OpenAI.) Bloomberg also says that Microsoft intends to keep partnering with Nvidia too, and that it will continue buying Nvidia chipsets as needed.

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