NVIDIA, Microsoft Team Up To Build Landmark Cloud AI Computer - Microsoft (NASDAQ:MSFT), NVIDIA (NASDAQ:NVDA)

NVIDIA Corp NVDA forged a multi-year collaboration with Microsoft Corp MSFT to build one of the most powerful AI supercomputers in the world.
Microsoft Azure's advanced supercomputing infrastructure, NVIDIA GPUs, networking, and full AI software will power the supercomputer.
The AI computer will operate on Microsoft's Azure cloud, using tens of thousands of graphics processing units (GPUs), NVIDIA's most potent H100, and its A100 chips.
Also Read: US Offers Relaxations To Nvidia For AI Chip Development In China
Each A100 chip is worth $10,000 to $12,000, and the H100 is far more expensive than that, Reuters reports.
The report quoted Ian Buck, NVIDIA's general manager for Hyperscale and HPC, who said, "We're seeing a broad groundswell of AI adoption ... and the need for applying AI for enterprise use cases."
In addition to selling Microsoft the chips, NVIDIA would partner with the software and cloud giant to develop AI models.
Buck said NVIDIA would also be a customer of Microsoft's AI cloud computer and develop AI applications to offer customers services.
The report further noted that the rapid growth of AI models, such as those used for natural language processing, has sharply boosted demand for faster, more powerful computing infrastructure.
NVIDIA said Azure would be the first public cloud to use its Quantum-2 InfiniBand networking technology, which has a speed of 400 gigabits per second.
Price Action: NVDA shares traded lower by 2.83% at $161.95 on the last check Wednesday.
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