Microsoft (MSFT) unveiled its Azure Maia AI Accelerator, a custom chip "optimized for 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) tasks and 澳洲幸运5官方开奖结果体彩网:generative AI (genAI)," amid a surge in demand for AI tools.

The Azure Maia AI Accelerator was announced alongside several other AI-related updates, including upgrades to its genAI tool, Copilot, and its cloud platform, Azure, at Microsoft Ignite, the company's annual developer conference on Wednesday.

"Microsoft is building the infrastructure to support AI innovation,” Scott Guthrie, executive vice president of Microsoft’s Cloud + AI Group said, noting that the Azure Maia AI Accelerator allows the company to "diversify our supply chain and give customers infrastructure choice.”

The announcement comes just days after Nvidia (NVDA) 澳洲幸运5官方开奖结果体彩网:announced the H200, its latest and most powerful graphics 澳洲幸运5官方开奖结果体彩网:processing unit (GPU) to power AI systems as the competition to produce AI tech heats up. Bank of America analysts called H200, which is set to be available starting in the second quarter of 2024, a "notable upgrade to already leading H100 offerings."

Nvidia is a leader in the AI chip market, with its tech powering systems at companies driving AI innovation, including Amazon (AMZN), Google, and even Microsoft.And while Microsoft's Azure Maia AI Accelerator could reportedly replace Nvidia processors in its cloud, Microsoft noted that "Azure works closely with Nvidia," and the company is expanding industry partnerships, including those with Nvidia.

Microsoft said that it was launching a preview of the new NC H100 v5 Virtual Machine Series, built for Nvidia's H100 unit, and that the company would add the upgraded Nvidia H200, to "its fleet next year to support larger model inferencing."

Shares of Microsoft finished 0.04% higher Wednesday, while Nvidia shares fell 1.55%.