--- title: "Microsoft and AMD Deepen AI Partnership, Azure Introduces Helios Rack-Scale AI System" type: "News" locale: "en" url: "https://longbridge.com/en/news/293238528.md" description: "Microsoft Azure introduces AMD's Helios rack-scale AI system, adding a critical weight to AMD's challenge against NVIDIA. Helios integrates full-stack proprietary hardware, commanding a higher price than competitors but emphasizing cost advantages. Although AMD has secured major clients such as Meta and OpenAI, with market share expected to climb from 4.5% to over 20%, analysts point out that the CUDA ecosystem gap remains the biggest test for its transition from an \"alternative amid capacity shortages\" to a \"technology leader.\"" datetime: "2026-07-20T16:28:13.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293238528.md) - [en](https://longbridge.com/en/news/293238528.md) - [zh-HK](https://longbridge.com/zh-HK/news/293238528.md) --- # Microsoft and AMD Deepen AI Partnership, Azure Introduces Helios Rack-Scale AI System AMD and Microsoft are expanding their long-term partnership, adding significant weight to AMD's challenge against NVIDIA's dominance in the AI chip market. On July 20, it was reported that **Microsoft will deploy AMD's Helios rack-scale solution on its Azure cloud platform to drive cutting-edge model AI inference workloads.** AMD plans to begin shipping to customers, including Microsoft, in the second half of 2026. The collaboration also covers the addition of two new virtual machine series on Azure based on the sixth-generation AMD EPYC Venice processors, as well as the deployment of AMD Pensando Data Processing Units (DPUs) in AMD's AI backend network infrastructure and select Azure services. Microsoft CEO Satya Nadella stated, "We are expanding the Azure infrastructure portfolio with AMD Helios to provide customers with the performance, scale, and choice needed to build and run next-generation AI applications." This partnership further enriches Microsoft's sources of AI computing power, holding significant strategic importance for Microsoft as it accelerates the development of self-developed models and continues to expand its R&D computing investments. ## Helios: AMD's First Rack-Scale AI System **Helios is AMD's first rack-scale AI system and the most direct competitor to date to NVIDIA's Grace Blackwell and Vera Rubin systems.** The system integrates AMD's self-developed GPUs, CPUs, networking chips, and software. Each compute tray is equipped with four Instinct GPUs driven by a single EPYC central processor, and each tray also features up to twelve networking chips developed based on technology acquired through AMD's 2022 purchase of Pensando. Forrest Norrod, head of AMD's Data Center business, stated that **Helios's core competitiveness lies in "delivering the best total cost of ownership and the lowest cost per token,"** noting that customer feedback confirms the achievement of this goal. AMD CEO Lisa Su previously indicated that Helios offers "significant advantages" over NVIDIA's rack-scale systems in terms of inference performance, memory bandwidth, and memory capacity. Regarding cost, market research firm Futurum Group estimates Helios's price at between $5 million and $5.5 million, which is higher than the firm's valuation of NVIDIA's second-generation rack-scale system, Vera Rubin, at $3.5 million to $4 million. ## Customer Base Continues to Expand as AMD Accelerates Market Share Grab Microsoft's addition to the Helios customer lineup further strengthens AMD's buyer base. Previously, Meta announced it would use up to 6 gigawatts of AMD GPUs over time, starting with the deployment of 1 gigawatt on Helios racks; OpenAI, Oracle, and India's largest IT enterprise, Tata Consultancy Services, have also made significant deployment commitments. AMD stated that eight of the top ten AI companies globally run workloads on its Instinct GPUs. Currently, NVIDIA holds over 95% of the data center GPU market, while AMD accounts for approximately 4.5%. Daniel Newman, an analyst at Futurum Group, believes that **AMD is poised to increase its market share to 20%–25%, "which would mean hundreds of billions of dollars in revenue."** AMD reported a 57% year-over-year increase in data center business revenue in the first quarter of 2026 and plans to achieve tens of billions of dollars in data center AI revenue annually starting in 2027, with the majority coming from Helios. ## Deepening Long-Term Partnership, Software Ecosystem Remains Key Variable **This collaboration is a continuation of the long-standing partnership between AMD and Microsoft.** AMD chips have long powered Microsoft Surface PCs and Xbox gaming consoles; in 2023, Microsoft was the first to adopt AMD MI300X GPUs for AI workloads, while also deploying its self-developed Maia chips in data centers. Citing analysts, reports indicate that while AMD has largely caught up with NVIDIA at the hardware level, the software ecosystem remains a key gap. Neil Shah, an analyst at Counterpoint Research, stated that while AMD's Helios chips are "comparable to NVIDIA GPUs and CPUs" in performance, "the key lies in software and optimization," with NVIDIA possessing a more mature and vast ecosystem thanks to CUDA. Newman raised another core question: "Is AMD's success due to technological leadership, or simply because computing supply is so tight that anyone who can manufacture chips finds buyers?" The actual performance of early Helios deployments will largely determine the answer to this question. ### Related Stocks - [AMD.US](https://longbridge.com/en/quote/AMD.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [MSFT.US](https://longbridge.com/en/quote/MSFT.US.md) - [META.US](https://longbridge.com/en/quote/META.US.md) - [MSFL.US](https://longbridge.com/en/quote/MSFL.US.md) - [NVDS.US](https://longbridge.com/en/quote/NVDS.US.md) - [MSFO.US](https://longbridge.com/en/quote/MSFO.US.md) - [NVDQ.US](https://longbridge.com/en/quote/NVDQ.US.md) - [AMDD.US](https://longbridge.com/en/quote/AMDD.US.md) - [MSFU.US](https://longbridge.com/en/quote/MSFU.US.md) - [AMDL.US](https://longbridge.com/en/quote/AMDL.US.md) - [AMUU.US](https://longbridge.com/en/quote/AMUU.US.md) - [NVD.US](https://longbridge.com/en/quote/NVD.US.md) - [MSFX.US](https://longbridge.com/en/quote/MSFX.US.md) - [MSFD.US](https://longbridge.com/en/quote/MSFD.US.md) - [AMDY.US](https://longbridge.com/en/quote/AMDY.US.md) - [MAGX.US](https://longbridge.com/en/quote/MAGX.US.md) - [FBL.US](https://longbridge.com/en/quote/FBL.US.md) - [NVDX.US](https://longbridge.com/en/quote/NVDX.US.md) - [NVDY.US](https://longbridge.com/en/quote/NVDY.US.md) - [METW.US](https://longbridge.com/en/quote/METW.US.md) - [07788.HK](https://longbridge.com/en/quote/07788.HK.md) - [NVDU.US](https://longbridge.com/en/quote/NVDU.US.md) - [07388.HK](https://longbridge.com/en/quote/07388.HK.md) - [AMDG.US](https://longbridge.com/en/quote/AMDG.US.md) - [DAMD.US](https://longbridge.com/en/quote/DAMD.US.md) - [NVDD.US](https://longbridge.com/en/quote/NVDD.US.md) - [AMDW.US](https://longbridge.com/en/quote/AMDW.US.md) - [FBY.US](https://longbridge.com/en/quote/FBY.US.md) - [FBYY.US](https://longbridge.com/en/quote/FBYY.US.md) - [METD.US](https://longbridge.com/en/quote/METD.US.md) - [METU.US](https://longbridge.com/en/quote/METU.US.md) - [NVDL.US](https://longbridge.com/en/quote/NVDL.US.md) - [NVDB.US](https://longbridge.com/en/quote/NVDB.US.md) - [NVDG.US](https://longbridge.com/en/quote/NVDG.US.md) - [NVDO.US](https://longbridge.com/en/quote/NVDO.US.md) - [NVDW.US](https://longbridge.com/en/quote/NVDW.US.md) - [NVYY.US](https://longbridge.com/en/quote/NVYY.US.md) - [NYYY.US](https://longbridge.com/en/quote/NYYY.US.md) - [DIPS.US](https://longbridge.com/en/quote/DIPS.US.md) - [09388.HK](https://longbridge.com/en/quote/09388.HK.md) - [MSFW.US](https://longbridge.com/en/quote/MSFW.US.md) - [MSFY.US](https://longbridge.com/en/quote/MSFY.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [SOXQ.US](https://longbridge.com/en/quote/SOXQ.US.md) - [XSD.US](https://longbridge.com/en/quote/XSD.US.md) - [PSI.US](https://longbridge.com/en/quote/PSI.US.md) - [FTXL.US](https://longbridge.com/en/quote/FTXL.US.md) - [ORCL.US](https://longbridge.com/en/quote/ORCL.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) - [ORCL-D.US](https://longbridge.com/en/quote/ORCL-D.US.md) ## Related News & Research - [Meta Platforms Q2 Preview: Key Items to Watch to Turn Stock Around After Earnings](https://longbridge.com/en/news/294099452.md) - [Core Scientific Isn't Just a Bitcoin Miner Anymore. AMD Just Confirmed Its AI Pivot.](https://longbridge.com/en/news/294072910.md) - [EXPLAINER-The $400 million ASML 'printers' key for the AI chip boom](https://longbridge.com/en/news/294096459.md) - [LIVE MARKETS-AI's not that fun and easy. Just look at the SOX](https://longbridge.com/en/news/294098193.md) - [Cementing the Sky: Why NVIDIA’s Bet on Nebius Matters](https://longbridge.com/en/news/293622826.md)