Several top tech companies, including Microsoft, Meta, Intel, and others, have unveiled a new industry standard called "Ultra Accelerator Link (UALink)" aimed at challenging Nvidia's dominance in the AI chip market. This initiative, announced on Thursday, seeks to establish a standardized communication interface for AI accelerators, crucial for processing vast amounts of data in AI-related tasks.

According to a joint statement by the companies involved, "An industry specification becomes critical to standardize the interface for AI and Machine Learning, HPC (high-performance computing), and Cloud applications for the next generation of AI data centers and implementations."

UALink, based on open standards, aims to provide system OEMs, IT professionals, and system integrators with a pathway for easier integration, greater flexibility, and scalability in AI-connected data centers.

The move comes amidst Nvidia's dominant position in the AI chip market, holding approximately 80% market share. The new initiative is seen as a strategic attempt by Microsoft, Meta, and other tech giants to challenge this dominance and foster innovation in AI hardware.

Earlier this year, Bloomberg reported that OpenAI CEO Sam Altman was exploring options to start a chip-making company to reduce dependence on Nvidia. OpenAI, known for AI models like ChatGPT and DALL-E, is seeking to diversify its suppliers and collaborate with other chip manufacturers.

While OpenAI has not finalized its plans, the discussions reflect broader concerns in the industry over Nvidia's market control and the need for alternative solutions to meet the growing demand for AI chips.

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