Microsoft Unveils New AI Infrastructure Chips

At its Ignite conference, Microsoft unveiled two new custom infrastructure chips aimed at enhancing AI performance and data security in its data centers. The Azure Integrated HSM chip is designed to secure sensitive data, while the Azure Boost DPU focuses on improving processing efficiency for cloud storage tasks, achieving fourfold performance improvements with three times less power consumption. This move marks Microsoft's strategy to reduce reliance on major chipmakers like Intel and Nvidia by engineering its own silicon, similar to competitors like Amazon and Google. Additionally, Microsoft introduced a next-generation liquid cooling system to optimize server temperatures for AI workloads. This innovation is expected to transform the data center operations landscape and may influence market dynamics among tech giants. With these developments, Microsoft is asserting greater control over its cloud infrastructure and supporting sustainability initiatives.