Nvidia Scores a Huge Win -- Microsoft Will Be First Public Cloud to Adopt Its AI Stack

$NVIDIA (NVDA.US)$ just reported third-quarter earnings, and it's still working through too much inventory and a tough market in China. Results were about what could be expected right now.
The biggest news, though, was a partnership with $Microsoft (MSFT.US)$ cloud computing segment, Azure, to build a new supercomputer. Nvidia says Microsoft is the first public cloud business to adopt its full, advanced artificial intelligence (AI) stack built from Nvidia hardware and software.
As CEO Jensen Huang discussed in the latest earnings call, lots of companies -- from large, well-established ones to a slew of new start-ups -- want quick and easy-to-use access to Nvidia's full-stack computing offerings. Thus, getting distribution of its hardware and AI software via public clouds like Microsoft and Oracle is a big deal for Nvidia. The quicker it can do so, the better. It's still early on in generating a recurring revenue stream from cloud subscription access to its AI suite, and distribution via partners like Microsoft and Oracle will help it reach more customers at a faster rate.
But how far could Nvidia take things? After all, it has competition in this space. $Advanced Micro Devices (AMD.US)$ also has data center computing accelerator chips. Even $Intel (INTC.US)$ , though woefully behind at the moment, is trying to make some headway designing GPUs for data center AI applications.