The report also said Microsoft has been working on the chip for years. The chip, the report said, is designed for data center servers that train and run large language models, the software behind conversational AI features such as OpenAI's ChatGPT.

Microsoft's data center servers currently rely on Nvidia’s AI chips to power its LLMs and for AI features in its productivity apps.

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Cramer Isn’t Worried: Following the report, Nvidia stock shed 0.54% to $455.14 in after-hours trading, according to Benzinga Pro data.

Reacting to the rumor, Cramer, an avowed fan of Nvidia, its cutting-edge technology and its CEO Jensen Huang, said, “I would not sell the stock of Nvidia on some MISINFORMATION about Microsoft and AI chips.”

“It sounds like Misinformation to me,” he added.

Nvidia has been the frontrunner in the AI race. The company’s H-100 has enabled “a leapfrog in training, inference, basically generative AI,” and allowed ChatGPT to make its big debut last November, said Baird analyst Ted Mortonson, Business Insider reported.

“They have the entire AI silicon stack. And those are basically three components. They have the most advanced GPU, they have advanced networking embedded in the silicon, advanced memory embedded, and they’re now developing a new CPU,” he added.

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