Xilinx dethrones Intel exclusivity in Microsoft FPGA deal

Microsoft has committed to sourcing half its FPGA needs from Xilinx, the chief rival to Intel’s Altera division. It’s a blow to Altera, but not surprising, given Xilinx’s recent design wins and launches. Altera will undoubtedly release an updated design soon, but the deal ends a cushy relationship that has seen Microsoft install an Altera FPGA in all new Azure servers. The initial report came from Bloomberg, but third-parties seem to have confirmed its veracity. It is not great news for Intel, especially as it is still looking for a return on its $16.7bn acquisition of Altera in 2015, and data center FPGAs are vital for that. Microsoft is diversifying its supply chain with the move, hoping to get the…