Advanced Micro Devices (AMD) unveiled its latest artificial intelligence processors.
And detailed its plans to develop AI chips over the next two years in an effort to compete with industry leader Nvidia.
Developing AI chips
Computex technology trade show
At the Computex technology trade show in Taipei, AMD CEO Lisa Su created the MI325X accelerator, which will be available in the fourth quarter of 2024.
The race to develop generative AI programs has resulted in increasing demand.
For advanced AI data centre chips capable of supporting these intricate applications.
Generative AI Programs
AMD has been competing with Nvidia, which currently dominates the lucrative AI semiconductor market, accounting for roughly 80% of it.
AMD competing with Nvidia
Since last year, Nvidia has made it clear to investors that it intends to shorten its release cycle to once a year.
“AI is clearly our number one priority as a company and we have really harnessed all of the development capability within the company to do that,” Su told.
“This annual cadence is something that is there because the market requires newer products and newer capabilities… Every year we have the next big thing such that we always have the most competitive portfolio.”
MI350 series of chips
AMD also announced the MI350 series of chips, which are anticipated to be available in 2025 and will be built around new chip design.
AI responses, by 35 times
AMD expects the MI350 to outperform the current MI300 series of AI chips in inference, the process of computing generative AI responses, by 35 times.
AMD additionally unveiled the MI400 series, which will be available in 2026 and built on the “Next” architecture.
Nvidia CEO Jensen Huang said on Sunday that the company’s next-generation AI chip platform.
Rubin, which is set to launch in 2026, will include GPUs, CPUs, and networking chips.
Investors, who invested billions of dollars into Wall Street’s picks-and-shovels commerce, have been looking for longer-term refreshes.
From chipmakers to assess the durability of the expanding genAI rally, which has so far demonstrated no signs of slowing.
AMD Shares
On Monday, AMD shares remained flat, while Nvidia rose more than 3%. AMD’s value has risen by over double since the beginning of 2023.
“While the proof will be in the pudding, there’s no doubt that AMD is taking Nvidia heads-on and companies looking for alternatives to Nvidia are bound to be happy to hear what AMD had to say,” said Technalysis Research chief analyst Bob O’Donnell.
AMD’s Su
AMD’s Su said in April that the company expects AI chip sales of around $4 billion in 2024, up $500 million.
AMD announced that its latest version of its CPUs will be available in the second half of 2024.
While businesses typically prioritise spending on AI chips in data centres, some of AMD’s CPUs are used in tandem with graphics processor units, though the ratio is skewed in favour of GPUs.
To read our blog on “Nvidia poised to take over Apple,” click here
