Microsoft Develops AI Server Gear to Lessen Reliance on Nvidia

Microsoft is taking another step to reduce its dependence on Nvidia.

The software giant is developing a networking card to ensure that data moves quickly between its servers, as an alternative to one supplied by Nvidia, said a person with direct knowledge. In addition to potentially saving Microsoft money, the company hopes the new networking gear will improve the performance of its Nvidia chip servers.

The move comes as Nvidia has ridden a surge of demand for its artificial intelligence chips, triggering intense debate about how long the surge will continue and whether its power might be eroded through a combination of rival AI chips arriving on the market and companies like Microsoft taking steps to be less dependent on it.