Advanced Micro Devices (AMD, Financials), a U.S. chipmaker that builds processors and AI accelerators, rose about 4% in premarket trading after Microsoft expanded its use of AMD hardware across Azure.
Microsoft plans to deploy AMDs Helios Rackscale Solution for AI inference, Azure services and customer workloads.
Helios brings together Instinct MI455X GPUs, EPYC Venice CPUs, Pensando networking and ROCm software in one system.
Azure will also add two new virtual machine lines powered by AMD EPYC processors and expand its use of Pensando data processing units.
The agreement matters because Microsoft is one of the worlds largest cloud buyers. A broader rollout could give AMD more credibility with other customers looking for alternatives to Nvidia.
It also shows that AMD is selling more than standalone chips. The company is pushing a full rack-scale platform that combines compute, networking and software.
Microsoft CEO Satya Nadella said the partnership would give Azure customers more performance, scale and choice for building AI applications.
Attention now turns to AMDs Aug. 4 earnings report, where investors will look for signs that large cloud deals are beginning to lift data center revenue.