Microsoft launches AI chips to support OpenAI and Copilot

New chips for OpenAI and Copilot coming in 2024

Microsoft has introduced its first dedicated chips for AI in the cloud at its Ignite 2023 developer event.

Two new processors, to support services like OpenAI and Copilot, are expected to launch in the first quarter of 2024.

They include a general purpose chip based on Arm designs, called Cobalt, and a specialised AI CPU named Maia, both of which will be positioned in Microsoft's Azure data centres next year.

The company's entry to the AI chip market will mean users can opt for an alternative supplier to Nvidia, which currently dominates the market.

Microsoft committed to invest $10 billion in OpenAI this year as a part of multi-year partnership, and has designed its Maia chip to pair with the AI company's large language model, GPT.

The chip initiative comes years after its cloud computing rivals Google and Amazon first introduced their own AI accelerators. The company's investment in silicon shows it doubling down on a multibillion dollar bet that generative AI will define the tech industry in the 2020s.

Sam Altman, chief executive of OpenAI said: "Azure's end-to-end AI architecture, now optimised down to the silicon with Maia, paves the way for training more capable models and making those models cheaper for our customers."

The company also made other announcements at Ignite, including another addition to its Copilot generative-AI services.

The new Copilot for Service will allow customer service agents to use tools like Outlook and Teams to assist customers. Agents could use generative-AI summaries of Teams meeting with customers, whilst automating CRM jobs including scheduling a meeting, putting in follow-ups for tasks and more.

The company also announced Microsoft Mesh, a metaverse-adjacent system Teams users can use to join meetings in full 3D virtual spaces as avatars and create immersive spaces for team members. New features in Teams also include voice isolation during calls and more options for decorative backgrounds.

Teams chats and channels will get some new additions as well, including a way to add a group chat profile picture; a way to customise default reactions; and more.

The new Teams experience is now available on the web for people who use the Microsoft Edge or Google Chrome browsers.