Core Viewpoint - Microsoft aims to transition its data centers to primarily utilize self-developed chips, reducing reliance on major chip manufacturers like NVIDIA and AMD [3][4][6]. Group 1: Chip Development Strategy - Microsoft is focusing on designing a complete data center system, which includes not only chips but also networking and cooling systems [7]. - The company has already launched the Azure Maia AI accelerator chip and Cobalt CPU, and is reportedly developing next-generation semiconductor products [5]. - Microsoft emphasizes the importance of selecting chips based on the best cost-performance ratio, indicating a willingness to consider various solutions as long as capacity meets demand [5][4]. Group 2: Market Context and Competition - Major cloud computing companies, including Microsoft, are increasingly designing custom chips for their data centers to enhance efficiency and reduce dependency on NVIDIA and AMD [4][7]. - The AI sector is driving significant capital expenditure, with tech giants committing over $300 billion this year, primarily towards AI-related investments [8]. Group 3: Capacity Challenges - There is a significant shortage of computing power, described as a "massive crunch," particularly since the launch of ChatGPT, which has made it difficult to rapidly scale capacity [9]. - Despite aggressive deployment of computing resources over the past year, projections often fall short of actual demand, indicating ongoing challenges in meeting the needs of AI workloads [10].