Microsoft develops AI server gear to lessen reliance on Nvidia, The Information reports

Reuters

Published Feb 20, 2024 11:32AM ET

Updated Feb 20, 2024 12:06PM ET

(Reuters) -Microsoft is developing a new network card that could improve the performance of its Maia AI server chip and potentially reduce the company's reliance on chip designer Nvidia (NASDAQ:NVDA), The Information reported on Tuesday.

Microsoft (NASDAQ:MSFT) CEO Satya Nadella has tapped Pradeep Sindhu, who co-founded networking gear developer Juniper Networks (NYSE:JNPR), to spearhead the network card effort, the report said citing a person with knowledge of the matter. Microsoft acquired Sindhu's server chip startup, Fungible, last year.

The new network card is similar to Nvidia's ConnectX-7 card, which the chip developer sells alongside its graphic processor units (GPUs), the report added.

The equipment could take more than a year to develop and, if successful, could lessen the time it takes for OpenAI to train its models on Microsoft servers as well as make the process less expensive, according to the report.

Microsoft did not immediately respond to a Reuters request for comment.