Microsoft has released two custom chips designed to enhance the performance and efficiency of its Azure cloud platform.
Revealed during the Ignite conference on Tuesday, the company aims to bolster artificial intelligence (AI) operations and improve data security within its data centres.
The first chip, named the Azure Integrated Hardware Security Module (HSM), focuses on fortifying encryption and safeguarding sensitive security data within a protected module.
Beginning in 2025, this chip will be integrated into every new server deployed across Microsoft’s data centres, ensuring solid security measures for both general-purpose and confidential workloads.
The second innovation, the Azure Boost Data Processing Unit (DPU), is built to optimise data-centric tasks, such as networking and storage while reducing energy consumption.
Microsoft claims the DPU can deliver four times the performance of existing hardware while consuming only a third of the power, a move aimed at improving efficiency in handling AI and cloud storage demands.
Designing in-house chips will enable Microsoft to reduce dependency on third-party manufacturers such as Intel and Nvidia, targeting hardware at specific workloads and achieving cost savings.
In addition to the new chips, the company unveiled advancements in data centre cooling technology. A liquid-based system has been designed to manage heat more effectively, supporting the growing computational demands of large-scale AI applications.
Expanding Cloud Infrastructure with High-Performance Solutions
The announcements come as Microsoft enhances its cloud services with cutting-edge technologies. The company revealed plans to introduce an AI supercomputing service powered by Nvidia’s Blackwell GPUs, integrated with advanced networking solutions.
This initiative aims to deliver outstanding computational power for AI workloads, enabling businesses to leverage high-performance cloud-based AI solutions.
Furthermore, Microsoft is collaborating with AMD to roll out custom high-performance computing (HPC) services. These offerings, based on AMD’s bespoke Epyc processors, promise adequate speed and efficiency gains for intensive workloads. Preview availability is expected in 2025.
Focus on Security and Performance
With cyber threats on the rise, Microsoft’s focus on enhancing security through the Azure Integrated HSM chip reiterates its assertion to protect users’ data.
This chip complements existing security features, such as Azure’s Project Cerebrus, by ensuring cryptographic keys remain securely stored within the hardware.
On the performance side, the Azure Boost DPU highlights the advantages of offloading specific tasks from CPUs and GPUs.
This innovation accelerates cloud operations and supports Microsoft’s sustainability goals by reducing energy consumption across its data centres.
Driving the Future of Cloud Computing
With these developments, Microsoft is strategically investing in custom hardware to meet the changing needs of AI and cloud computing. The company aims to deliver faster, more secure, and cost-effective services for its customers.
