Microsoft wants to mainly use its own AI data center chips in the future

Core Insights - Microsoft aims to primarily utilize its own chips in data centers to reduce dependence on Nvidia and AMD [1][6] - The company has been developing custom chips for AI workloads, including the Azure Maia AI Accelerator and Cobalt CPU [5] - Microsoft is focused on optimizing the entire system design, including networks and cooling, to enhance performance for specific workloads [7] Chip Strategy - Microsoft currently relies on Nvidia and AMD for chip supply, prioritizing the best price-performance ratio [3][4] - The long-term strategy involves increasing the use of Microsoft-designed silicon in data centers [6] - The company is exploring next-generation semiconductor products to further its chip development efforts [5] Industry Context - Nvidia has been the dominant player in the semiconductor space for AI applications, while AMD holds a smaller market share [2] - Major cloud computing companies, including Microsoft, Google, and Amazon, are designing their own chips to enhance efficiency and reduce reliance on external suppliers [7]