Microsoft will likely introduce its first artificial intelligence (AI) chip next month, according to a report from technology publication The Information. The move is seen as Microsoft’s attempt to reduce its reliance on Nvidia’s graphics processing unit (GPU) chips, which are in high demand and in short supply.

Microsoft’s artificial intelligence chip, codenamed Athena, was designed for a data center server. It is expected to compete with NVIDIA’s flagship H100 GPU, which is currently used by Microsoft and other cloud providers to run large language models (LLM) and other AI applications.

Information Athena was first reported on in April of this year. The chip is expected to be introduced at the Microsoft Ignite conference planned to be held on November 14-17.

Athena’s development comes at a time when demand for AI chips is increasing. Masters in particular require a lot of computing power to train and run. As a result, there is a shortage of AI chips, causing prices to rise.

Microsoft-backed OpenAI is also reportedly exploring the possibility of developing its own AI chips. They hope to reduce dependence on Nvidia and other chipmakers by developing their own AI chips. It can also help Microsoft reduce costs and improve the performance of cloud services. Google and Amazon are also developing their own artificial intelligence chips, indicating that the market for artificial intelligence chips will grow rapidly.