Nvidia stock gains as Microsoft details plans to spend on AI infrastructure

Shares of Nvidia Corp. rose on Tuesday after Microsoft Corp. detailed plans to invest in artificial intelligence (AI) infrastructure, including the use of GPUs from the chipmaker.
Nvidia’s stock NVDA, +2.76% climbed 2.8% in afternoon trading as Microsoft MSFT, -0.19% said it will spend $1 billion over four years to build an AI supercomputer and open-source its Azure cloud platform for AI development and deployment. The company also announced a new partnership with OpenAI, a research lab focused on developing artificial general intelligence that can be used across multiple industries such as healthcare and robotics.
Microsoft said it will use Nvidia’s TensorRT software to optimize deep learning models for inference performance on its Azure cloud platform and leverage Nvidia GPUs for training workloads running on its supercomputer system called “Azure Machine Learning Service” or AMLS for short.
The move is part of Microsoft’s larger strategy to become more competitive in the rapidly growing market for AI technology by investing heavily in both hardware and software solutions that enable developers to create powerful applications using machine learning algorithms at scale without having to worry about managing complex infrastructure components like servers or storage systems themselves..
In addition, Microsoft has been working closely with other tech giants such as Google GOOGL, -0.45%, Amazon AMZN, -1.,21%, IBM IBM , +0.,11%, Oracle ORCL , +3.,14%, Apple AAPL , -2.,17% and Intel INTC , +4.,00%. These companies are all competing fiercely against each other when it comes to providing customers with access to cutting edge technologies related to AI development toolsets which could potentially give them an edge over their competitors if they manage their investments correctly..
For Nvidia investors this news is certainly welcome given that the company has been struggling lately due largely in part due too increased competition from rival chipmakers such as AMD AMD , +6,.22%. However now that one of the world’s largest tech companies is making a major investment into leveraging NVIDIA’s GPU technology there may be some hope yet for shareholders who have seen their stock price decline significantly since last year..
Overall this news should provide some much needed relief for investors who have been waiting patiently while watching NVIDIA’s share price struggle recently but only time will tell if these investments pay off long term or not.. |Nvidia stock gains as Microsoft details plans to spend on AI infrastructure|Technology|MarketWatch