AMD jumps 8% on report Microsoft is collaborating on A.I. chip push

AMD shares reached a session high on Thursday following a media report claiming the chipmaker was working with Microsoft on a new artificial-intelligence processor.

Microsoft’s top competitors in the cloud infrastructure market, Amazon and Alphabet, both have their own specialized chips that software developers can use to train models. But Microsoft to date has not released a special-purpose AI chip. The one in development in partnership with AMD carries the code name Athena, Bloomberg reported.

Microsoft is helping AMD to fund the initiative, Bloomberg reported, citing anonymous sources.

Nvidia shares moved lower following the report. Like other large technology companies, Microsoft relies on Nvidia graphics processing units to run AI models. But Microsoft to date has not released a special-purpose AI chip. The one in development in partnership with AMD carries the code name Athena, Bloomberg said.

AMD declined to comment. A Microsoft representative did not immediately respond to a request for comment.

Read the full Bloomberg report here.

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