What's Going On With Microsoft Stock Friday?

Microsoft Corp MSFT is delving into advanced chipmaking for AI with its new Maia 100 chip, showcasing a significant shift towards liquid cooling methods in data centers. 

The company designed the chip to attach to a cold plate, cooled by liquid flowing beneath, marking a transition from traditional air cooling methods. Liquid cooling, known for its superior heat absorption capacity compared to air, is not new to the tech world. 

Crypto miners and PC gamers used it for enhanced cooling efficiency, Bloomberg reports. 

Also Read: Reversal in Cloud Plans: Microsoft Pauses LinkedIn's Move to Azure, Impacting Competition with Amazon AWS

Still, its broader application in data centers remains limited due to challenges like water's electrical conductivity and the infrastructure overhaul required for large-scale implementation.

The increasing heat generation from power-intensive AI chips is prompting this shift. For example, Nvidia Corp's NVDA H100 AI accelerator, a key component in AI development, consumes substantial electricity, producing significant heat. 

As a result, cooling has become one of the fastest-growing costs in data centers. 

Microsoft's Maia chips, alongside their cooling hardware, are set to be installed in standard data centers from 2024, with Azure planning to expand liquid cooling in its operations.

Looking ahead, Microsoft aims to develop data centers capable of immersion cooling, where server racks operate inside cooling baths for even greater efficiency. 

This approach, however, raises questions about the choice of cooling liquid, especially considering environmental and safety concerns.

Intel Corp INTC, another major player in the chipmaking industry, is also exploring liquid cooling solutions. 

It recently amended its policies to allow customers to create liquid cooling systems without voiding product warranties. 

The shift towards liquid cooling is seen as essential for the future of data centers, particularly as they struggle to keep pace with the rapidly advancing requirements of AI systems. 

Additionally, liquid cooling presents opportunities for innovative applications, such as using warm water outflow for heating, as planned by Equinix for the 2024 Paris Olympics.

Price Action: MSFT shares traded higher by 0.42% at $367.47 premarket on the last check Friday.

Also Read: Microsoft's Nuclear Power Play: Can AI Revolutionize Energy for Tech Giants?

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.