This DPU is engineered to improve data center efficiency by integrating multiple server components into a single silicon piece, significantly enhancing power efficiency.

The first chip, the Azure Integrated HSM, features a dedicated hardware security module that complies with FIPS 140-3 Level 3 security standards, ensuring robust key management without compromising performance.

At the Ignite conference on November 19, 2024, Microsoft unveiled two new infrastructure chips designed to bolster AI operations and enhance data security within data centers.

Rani Borkar, corporate vice president of Azure Hardware Systems and Infrastructure, highlighted the importance of optimizing all layers of infrastructure to meet the increasing demands of AI workloads.

The second chip, known as the Azure Boost DPU, is optimized for cloud storage tasks and is claimed to achieve three times less power consumption while delivering four times greater performance compared to existing hardware.

As the demand for AI-driven cloud services surges, the efficiency of DPUs is becoming increasingly attractive to hyperscalers, with market predictions estimating a $5.5 billion industry by 2031.

These developments reflect Microsoft's ongoing commitment to enhancing its cloud computing strategy, as evidenced by the introduction of new Azure ND H200 V5 Virtual Machine series with NVIDIA's H200 GPUs, promising double the performance of previous models.

Microsoft's strategy includes heavy investment in custom silicon to reduce reliance on third-party processors from companies like Intel and Nvidia, mirroring similar approaches taken by competitors such as Amazon and Google.

In collaboration with Meta, Microsoft also introduced a disaggregated power rack design that allows for 35% more AI accelerators per server rack, utilizing 400-volt DC power.

The new Azure Container Apps now support NVIDIA GPUs, facilitating scalable AI deployment while offering cost-effective billing options.

Amid rising security threats, CEO Satya Nadella reaffirmed Microsoft's focus on security, particularly in light of the evolving threat landscape.

DPUs play a crucial role in offloading networking, storage, and security tasks from the CPU, thereby improving overall performance for applications, including those driven by AI.