Microsoft in the hopes of carving out a larger slice of the AI pie is developing its own cutting-edge AI chip called "Athena" that will power chatbots like ChatGPT, per The Information.

The rollout of the cutting-edge AI chip is being accelerated after the success of OpenAI's ChatGPT investment. Microsoft hopes it will outperform chips currently bought from other vendors saving time and money on its costly AI efforts.

Per the report, Athena will be used for training large-language models and support inference specifically designed for generative AI like ChatGPT to process massive amounts of data, pattern recognition, and output creation that mimics human conversation.

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The company has reportedly been working on the AI chip since 2019 and has made it available to a select group of Microsoft and OpenAI employees who are currently testing it out.

By creating its own AI chip, the tech giant is hoping to take the lead in the AI race, going head-to-head with other big tech companies like Amazon and Google, who also make their own in-house AI chips. Microsoft's relentless investment in AI technology puts it well on its way to grabbing a bigger market share from its competitors, most notably Google.

Its expanding market share in the AI landscape is becoming increasingly apparent after recent news of Samsung considering a shift to the ChatGPT-powered Microsoft Bing on all of its devices sent shockwaves through the search engine market, which has long been dominated by Google.