What occurred
Investors can’t get enough of stocks related to expert system (AI) nowadays. On Thursday, veteran chipmaker American Micro Devices (AMD 6.11%) gained from this after the publication of a media report mentioning it had actually discovered an effective partner to help it with its AI chip efforts. AMD stock increased to close the day almost 7% greater, in favorable contrast to the 0.7% decrease of the S&P 500 index.
So what
That early morning, mentioning unknown “individuals with understanding of the matter,” Bloomberg composed that AMD has actually coordinated with none besides Microsoft (MSFT 0.33%) in its AI chip efforts. According to the post’s sources, AMD and Microsoft have actually signed up with forces to establish extremely AI-capable chips.
The tech giant is offering financial backing to the chipmaker, and the 2 business are dealing with a Microsoft processor created particularly for AI abilities. This is code-named Athena.
Microsoft has actually been on the leading edge of AI advancement with its $10 billion financial investment in OpenAI, the designer of the white-hot ChatGPT chatbot that has actually controlled talk in lots of tech circles. Given that level of dedication, it’s not unexpected to learn that the business is obviously spending capital on the hardware side, too.
Now what
Neither AMD nor Microsoft has yet formally discussed the Bloomberg report. Additionally, the post didn’t put a figure on just how much Microsoft is investing into this AI chip cooperation.
If precise, it’s exceptional news for AMD and shows that it’s poised to be a force in AI processors — especially with a magnificent partner like Microsoft by its side.
Eric Volkman has no position in any of the stocks discussed. The Motley Fool has positions in and suggests Advanced Micro Devices and Microsoft. The Motley Fool has a disclosure policy.
