Microsoft (MSFT) is designing its own chips to take away from Intel (INTC)

Microsoft Corporation is working on an in-house processor design for use in server computers that run the company’s cloud services, adding an industry-wide effort to reduce reliance on Intel Corp.’s chip technology.

The world’s largest software maker is using According to people familiar with the plans, Arm Limited designs to produce a processor that will be used in its data centers. It is also exploring using another chip that will power some of its computer’s surface line. People asked not to discuss private initiatives. Intel’s stock closed 6.3% in New York at $ 47.46, a 21% decrease this year.

The move is a major commitment to supply Microsoft with the most important piece of hardware used. Cloud-computing rivals such as Inc. is already down the road with similar efforts. They have argued that their chips are better suited to some of their needs, mainly bringing more cost and performance benefits from Intel-off-the-shelf silicon.


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