Nvidia and Microsoft will collaborate to create and market AI models.
The company hasn't said how much its agreement with Microsoft is worth.
The most potent H100 and A100 Nvidia chips will be used.

Nvidia, a US chip designer and computing company, announced on Wednesday that it is collaborating with Microsoft to create a 'massive' computer to tackle demanding cloud-based artificial intelligence computing tasks. Tens of thousands of graphics processing units (GPUs), including the most potent H100 and A100 chips from Nvidia, will be used by the AI computer to run on Microsoft's Azure cloud.

Nvidia declined to disclose the deal's value, but industry sources claimed that each A100 chip costs between $10,000 and $12,000 (approximately Rs. 8,15,400 and 9,78,500), and the H100 is even more expensive.

Getting those services out there that customers can use to deploy AI for business use cases is becoming real, according to Ian Buck, general manager of Nvidia for Hyperscale and HPC, who told Reuters that we are at the inflection point where AI is entering the enterprise. The author claimed that there was 'a broad groundswell of AI acceptance... and the need for deploying AI for enterprise use cases.'

Nvidia stated that in addition to selling Microsoft the chips, the two companies will collaborate to create AI models. Nvidia will also use Microsoft's AI cloud computer, according to Buck, and will create AI applications on it to provide services to users.

Demand for quicker, more potent computing infrastructure has drastically increased due to the rapid rise of AI models like those used for natural language processing.

Azure will be the first public cloud to deploy Quantum-2 InfiniBand networking technology from Nvidia, which boasts a 400 gigabit per second speed. That networking technique quickly connects servers. This is crucial because intensive AI computation tasks demand hundreds of processors operating together across multiple servers.