Microsoft (MSFT) on Tuesday revealed what it called “breakthrough” technology for cooling AI chips in data centers using microfluidics. Vertiv (VRT) stock fell on the news as the data center infrastructure provider is a leader in liquid cooling.
“In the face of rising demand for AI and newer chip designs, the current cooling technology will put a ceiling on progress in just a few years,” Microsoft said in a blog post. “To help address this problem, Microsoft has successfully tested a new cooling system that removed heat up to three times better than cold plates, an advanced cooling technology commonly used today.”
Microsoft’s approach uses microfluidics to bring liquid coolant directly inside the silicon where the heat is. “Tiny channels are etched directly on the back of the silicon chip, creating grooves that allow cooling liquid to flow directly onto the chip and more efficiently remove heat,” Microsoft said.
Most graphics processing units for AI computing in data centers today use cold plates to cool the chips, But those plates are limited in the amount of heat they can remove because they are separated from the heat source by several layers, Microsoft said.
Microsoft said it hopes to use microfluidics for next-generation AI chips, but it gave no timeline for implementing the technology. Microsoft designs custom chips for its operations, including Cobalt and Maia processors.
Vertiv Stock Retreats On News
“As a next step, Microsoft continues to investigate how microfluidic cooling can be incorporated into future generations of its first-party chips,” the company said. “It will also continue to work with fabrication and silicon partners to bring microfluidics into production across its datacenters.”
In afternoon trades on the stock market today, Vertiv stock dropped more than 4% to 145.52. Microsoft stock dipped a fraction to 509.55.
Vertiv stock is on three IBD lists: IBD 50, Big Cap 20 and Leaderboard. Microsoft stock is on two lists: Long-Term Leaders and Tech Leaders.
Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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