Report: Microsoft Developing Its Own AI Chip

26 March 2021, Bavaria, Munich: The Microsoft logo hangs on the facade of an office building in Parkstadt Schwabing, in the north of the Bavarian capital. (dpa)
26 March 2021, Bavaria, Munich: The Microsoft logo hangs on the facade of an office building in Parkstadt Schwabing, in the north of the Bavarian capital. (dpa)
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Report: Microsoft Developing Its Own AI Chip

26 March 2021, Bavaria, Munich: The Microsoft logo hangs on the facade of an office building in Parkstadt Schwabing, in the north of the Bavarian capital. (dpa)
26 March 2021, Bavaria, Munich: The Microsoft logo hangs on the facade of an office building in Parkstadt Schwabing, in the north of the Bavarian capital. (dpa)

Microsoft Corp is developing its own artificial intelligence chip code-named "Athena" that will power the technology behind AI chatbots like ChatGPT, the Information reported on Tuesday, citing two people familiar with the matter.

The company, which was an early backer of ChatGPT-owner OpenAI, has been working on the chip since 2019 and it is being tested by a small group of Microsoft and OpenAI employees, the report said.

According to the report, the chips will be used for training large-language models and supporting inference - both needed by generative AI like the one used in ChatGPT to process massive amounts of data, recognize patterns and create new outputs to mimic human conversation.

Microsoft is hoping the chip will perform better than what it currently buys from other vendors, saving it time and money on its costly AI efforts, the report said. Other big tech companies including Amazon and Google also make their own in-house chips for AI.

So far, chip designer Nvidia dominates the market for such chips.

Microsoft and Nvidia did not immediately respond to a request for comment.

The rollout is being accelerated by Microsoft following the success of ChatGPT, the report said. The Windows maker earlier this year launched its own AI-powered search engine, Bing AI, capitalizing on its partnership with OpenAI and trying to grab market share from Google.



Samsung Expects a 56% Drop in Q2 Operating Profit, Far Short of Estimates

The logo of Samsung Electronics is seen at its headquarters in Seoul, South Korea, on July 4, 2016. (Reuters)
The logo of Samsung Electronics is seen at its headquarters in Seoul, South Korea, on July 4, 2016. (Reuters)
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Samsung Expects a 56% Drop in Q2 Operating Profit, Far Short of Estimates

The logo of Samsung Electronics is seen at its headquarters in Seoul, South Korea, on July 4, 2016. (Reuters)
The logo of Samsung Electronics is seen at its headquarters in Seoul, South Korea, on July 4, 2016. (Reuters)

Samsung Electronics on Tuesday projected a 56% drop in second-quarter operating profit from a year earlier, missing analysts' estimates by far.

Its chip business struggled with weak sales of artificial intelligence chips, dogged by delays in the supply of its latest chips to Nvidia and continued losses in its contract chip manufacturing business, analysts said.

The world's largest memory chipmaker estimated an operating profit of 4.6 trillion won for the April-June period, versus a 6.2 trillion won LSEG SmartEstimate.

That would compare with 10.4 trillion won in the same period a year earlier and 6.7 trillion won in the preceding quarter.

Revenue would likely fall 0.1% to 74 trillion won from a year earlier, the filing showed.

Samsung is expected to release detailed results, including a breakdown of earnings for each of its businesses, in late July.