AMD jumps 8% on report Microsoft is collaborating on AI chip push

AMD shares rose to a session high on Thursday following a media report claiming the chipmaker was working with Microsoft on a new artificial intelligence processor.

Microsoft’s main competitors in the cloud infrastructure market, Amazon And Alphabet, both have their own specialized chips that software developers can use to train models. But to date, Microsoft has not released a special-purpose AI chip. The one in development in partnership with AMD is codenamed Athena, Bloomberg reported.

Microsoft is helping AMD fund the initiative, Bloomberg reported, citing unnamed sources.

Nvidia shares fell after the report. Like other big tech companies, Microsoft relies on Nvidia graphics processing units to run AI models. But to date, Microsoft has not released a special-purpose AI chip. The one in development in partnership with AMD is codenamed Athena, Bloomberg said.

AMD declined to comment. A Microsoft representative did not immediately respond to a request for comment.

Read Bloomberg’s full report here.

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