Does This New Chip Threaten Nvidia?
(NASDAQ: MSFT) recently introduced a new in-house AI (artificial intelligence) accelerator called Maia 200, positioning it as a chip built for high-performance inference workloads inside Azure. This likely has many investors wondering about this chip's potential impact on Nvidia (NASDAQ: NVDA), the AI chip designer whose graphics processing units (GPUs) and software stack have become central to today's AI computing buildout.
In short, while Microsoft's Maia 200 is notable, it's not the chip itself that Nvidia investors should be worried about, but rather the pace at which deep-pocketed cloud providers are building substitutes for some of the work that has flowed to Nvidia's GPUs. Can Nvidia keep capturing a large share of AI spending even as more inference capacity gets supplied by custom silicon inside the biggest cloud platforms?
Image source: Getty Images.
Source Fool.com
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