International Business Machines (IBM) is considering using its own artificial intelligence (AI) chip in a new cloud service, in a bid to lower costs and improve performance.

The chip, called the Artificial Intelligence Unit (AIU), was announced by IBM in October 2022. It is designed specifically for AI workloads, and is said to be more power-efficient than traditional chips.

IBM is currently testing the AIU in its Watson cloud service. If the tests are successful, the company plans to make the chip available to other cloud customers.

IBM believes that using its own AI chip will give it a competitive advantage in the cloud market. The company is facing increasing competition from rivals such as Amazon Web Services and Microsoft Azure.

"We believe that our own AI chip will give us a unique advantage in the cloud market," said Mukesh Khare, general manager of IBM Semiconductors. "It will allow us to offer our customers a more powerful and efficient cloud service."

IBM is not the only company that is developing AI chips. Other companies, such as Intel and Nvidia, are also working on AI chips. However, IBM believes that its AIU is the most advanced AI chip on the market.

"We are confident that our AIU is the best AI chip on the market," said Khare. "It is more powerful, more efficient, and more cost-effective than any other AI chip."

If IBM's plans are successful, it could help the company to regain market share in the cloud market. The company has been losing market share to rivals in recent years, and it is hoping that its new AI chip will help it to turn things around.

Here are some additional details about IBM's plans:

• The AIU is a custom-designed chip that is optimized for AI workloads.
• The chip is said to be more power-efficient than traditional chips, which could help to lower cloud service costs.
• IBM is currently testing the AIU in its Watson cloud service.
• If the tests are successful, the company plans to make the chip available to other cloud customers.

The implications of IBM's plans:

• IBM could gain a competitive advantage in the cloud market by using its own AI chip.
• The AIU could help to lower cloud service costs for businesses.
• The AIU could make AI more accessible to businesses of all sizes.