Advanced Micro Devices NASDAQ:AMD shares climbed about 4% on Monday after the chipmaker expanded its artificial intelligence partnership with Microsoft NASDAQ:MSFT, strengthening its position in the fast-growing AI infrastructure market.
Under the expanded collaboration, Microsoft Azure plans to deploy AMD's Helios Rackscale Solution to support large-scale AI inference workloads and enhance Azure AI services. The companies are also introducing new Azure virtual machines powered by AMD EPYC processors while expanding the use of AMD's Pensando data processing units across Microsoft's cloud infrastructure.
AMD said the Helios platform combines its Instinct MI455X graphics processors, next-generation EPYC Venice central processing units, Pensando networking technology and ROCm software into an integrated AI computing system designed for enterprise and hyperscale deployments.
The broader partnership reflects growing demand for AI computing infrastructure as cloud providers increase investments in advanced AI services. By expanding its footprint within Microsoft's cloud ecosystem, AMD aims to strengthen its presence in AI data centers, an increasingly competitive market dominated by large hyperscale customers.