Microsoft introduced two new custom chips to bolster its Azure cloud infrastructure. The Azure Boost Data Processing Unit (DPU) is a hardware accelerator that optimizes tasks related to data processing, networking, and storage. Designed for efficiency, it promises to quadruple performance in storage workloads while using a third of the power compared to current servers. Built on technology from Microsoft’s 2022 acquisition of Fungible, the DPU highlights the growing demand for such hardware in data-heavy applications like AI.
The company also announced the Azure Integrated Hardware Security Module (HSM), a cloud security chip designed to manage encryption and signing keys securely without adding latency. Starting next year, it will be installed in all new Azure servers to enhance protection across workloads.
These developments reflect Microsoft’s broader strategy to address escalating energy costs and evolving security threats. With competition from rivals like Nvidia, AMD, and AWS in the DPU space, Microsoft aims to strengthen its position by integrating custom silicon into its cloud services. CEO Satya Nadella emphasized the company’s commitment to security, recognizing its critical importance in a landscape shaped by AI advancements and increasing cyber threats.