Microsoft to Use Intel for In-House Custom AI Chip

Microsoft CEO Satya Nadella revealed that the software giant will use Intel’s 18A process to produce at least one of its new, in-house AI chip designs. It looks like old habits die hard, and the Wintel alliance will now live on past the PC era.

“We are in the midst of a very exciting platform shift that will fundamentally transform productivity for every individual organization and the entire industry,” Mr. Nadella said at Intel Foundry Direct Connect today. “To achieve this vision, we need a reliable supply of the most advanced, high-performance, and high-quality semiconductors. That’s why we are so excited to work with Intel Foundry, and why we have chosen a chip design that we plan to produce on the Intel 18A process.”

It’s not clear which chip Nadella is referring to: At Microsoft Ignite in November 2023, Microsoft announced two custom AI chipsets, the Azure Maia and Azure Cobalt, which will eventually power Azure’s AI infrastructure. But the Intel 18A manufacturing process will be Intel’s most advanced yet when it launches later in 2024. And Intel is now positioning its foundry business as the world’s first systems foundry for the AI era as it seeks to regain process leadership with Intel 18A in 2025. It says that effort is still on track.

“AI is profoundly transforming the world and how we think about technology and the silicon that powers it,” Intel CEO Pat Gelsinger said. “This is creating an unprecedented opportunity for the world’s most innovative chip designers and for Intel Foundry. Together, we can create new markets and revolutionize how the world uses technology to improve people’s lives.”

During the show, Intel also updated its process roadmap, adding a new Intel 14A node to the plan along with evolutions of its previously-announced Intel 3 and Intel 8A architectures. So far, Intel says, it has racked up $15 billion in manufacturing commitments. And while this wasn’t highlighted at the show, reports indicate that the microprocessor giant is also seeking $10 billion in chip-making subsidies from the U.S. government as part of the Chips and Science Act.