- Tram Ho
According to Bloomberg , Microsoft is working on internal processor designs for use with servers running the company’s cloud services, contributing to an industry-wide effort to reduce reliance on Intel’s chip technology.
Specifically, the world’s largest software maker is using ARM designs to produce a processor – which will be used in its data centers – according to people familiar with the design. plan. The company is also exploring the use of a different chip could power some Surface personal computers.
After the news was revealed, Intel shares fell 6.3% to close at $ 47.46, seeing a 21% decline this year.
The move is a major commitment from Microsoft to providing itself with the most important hardware they use. Cloud rivals like Amazon are making similar efforts. It was all based on the argument that the self-developed chip would be better suited to certain needs, offering cost and performance advantages over the pre-sold silicon mostly provided by Intel for a while.
Microsoft’s efforts are also more likely to lead to the creation of a server chip rather than a chip for Surface devices, though this could happen, according to some sources. The company’s chip design unit is responsible for reporting performance to Jason Zander, head of the Azure cloud business, instead of Panos Panay, who oversees Surface products. Representatives for Microsoft and Arm declined to comment on whether Microsoft is working on server processors and PCs.
“Because silicon is the building block for technology, we are continuing to invest in our own capabilities in areas such as design, manufacturing, and tools, while strengthening and strengthening our partnership. with many chip vendors, “ said Microsoft spokesman Frank Shaw.
Microsoft has increased hiring of processor engineers in recent years, even hiring chipmakers such as Intel, AMD, Nvidia … and people with downsizing. Qualcomm abandoned its efforts to develop server chips.
AMD is the second largest PC-based chip maker, and it is preparing to return to the server market after having been dominated by Intel for a decade.
Intel’s Xeon series of server chips currently power most machines in internet centers and corporate networks, generating the company’s most profitable revenue stream. It still accounts for about 90% of this market, despite AMD’s recent profit breakthroughs. Some Xeon chip models cost the equivalent of a small car.
“The incredible demand for computing driven by new workloads like AI is driving more silicon experiments in the cloud. Based on decades of x86 ecosystem innovation, we’re committed to delivering giving customers the world’s best CPUs and new products from GPUs to AI chips, “ Intel said in a statement. “In this expanding market, we expect to gain market share in areas such as AI training, 5G networking, graphics and autonomous driving.”
Customers like Microsoft increasingly are turning to alternatives to gain insight into the “mountain of data” that cloud computing and smartphones create. The adoption of artificial intelligence to automate that process has spurred a host of new chip designs. The biggest concern for owners of giant data centers, behind services like Office 365, is the increasing cost of powering their hardware. And self-developed chips are often more energy efficient.
If Microsoft were to push its own chip for the PC, it would go after Apple, which is also moving its entire line of Macs away from Intel processors. While neither Apple nor Microsoft devices occupy a large volume of the PC market, these products are positioned as high-end products with sleek design and high performance. When it announced its first new Mac based on the M1 chip, Apple touted a performance boost over standard PCs.
Source : Genk