Advanced Micro Devices AMD unveils new AI chips to compete with Nvidia.
To take on market leader Nvidia, Advanced Micro Devices (AMD) detailed its plans to develop AI chips over the next two years with its latest AI processors on Monday.
The requirement for the advanced CPUs required in AI data centers to manage these complex applications has increased dramatically as a result of the push to develop generative AI applications.
In the lucrative AI processor area, where Nvidia now has a dominant 80% market share, AMD has been working to challenge the company.
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Now that Nvidia has made it clear to investors since last year that it plans to cut its release cycle to once a year, AMD has followed suit.
“To achieve that, we have fully utilized the company’s development capabilities,” Su said to the reporters. “AI is our number one priority as a company.”
This yearly cycle is caused by the market’s demand for products with updated features. Because we consistently bring in the next great thing, we always have the most competitive portfolio.
MI350 Chip Series
AMD also revealed the MI350 chip series, which is anticipated to hit stores in 2025 and is based on cutting-edge semiconductor architecture.
According to AMD, the MI350 is expected to outperform the MI300 family of AI chips now available on the market in inference—the process of generating generative AI responses—by a factor of 35.
AMD also unveiled the MI400 series, which will debut in 2026 and is built on the “Next” architecture.
The CEO of Nvidia, Jensen Huang, announced on Sunday that GPUs, CPUs, and networking chips would be a part of the company’s next-generation AI chip platform, dubbed Rubin, which is scheduled for release in 2026.
Investors have been pouring billions of dollars into Wall Street’s picks-and-shovels trade, and they have been looking to chip companies for longer-term updates to assess how long the soaring generally will last—so far, no signs of a slowdown.
On Monday, Nvidia’s shares increased by more than 3%, while AMD’s were unchanged. Although AMD’s worth has more than doubled since the beginning of 2023, the increase is nothing compared to the more than seven-fold increase in Nvidia’s share price during the same time frame.
“There’s no doubt that AMD is taking Nvidia head-on and companies looking for alternatives to Nvidia are bound to be happy to hear what AMD had to say,” stated Bob, chief analyst at Technalysis Research. “But the proof will be in the pudding.”
AMD’s Su
In April, AMD’s Su stated that the company anticipates $4 billion in sales of AI chips by 2024, a $500 million increase over its previous projection.
AMD said at Computex that its most recent generation of CPUs will likely be released in the second half of 2024.
Though the ratio is skewed in favor of GPUs, some of AMD’s CPUs are utilized in conjunction with graphics processing units (GPUs), even though corporations typically prioritize spending on AI chips in data centers.
The complete description of AMD’s new neural processing units (NPUs), designed to manage on-device AI tasks in AI PCs, has been released.
Chipmakers have been depending on enhanced AI capabilities to drive the recovery of the PC market as it recovers from a long period of decline.
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