AMD, a well-known name in the technology industry, is shifting its focus. Instead of focusing on creating the most powerful gaming GPUs, the business is now prioritizing AI processors. This shift in focus is part of a bigger plan known as “UDNA,” which integrates AMD’s efforts on gaming graphics and data center processors into a single cohesive effort geared largely at AI.
In recent talks with Tom’s Hardware, AMD’s computing and graphics executive, Jack Huynh, was open about the company’s future path. He noted that, while AMD has achieved significant achievements in gaming graphics, the company’s focus is currently on expanding its reach at lower price points rather than dominating the high-end market. This transition is motivated by the desire to expand the client base, which is critical in encouraging developers to support AMD’s products. Huynh noted that without a big market share, it is difficult to persuade developers to choose AMD over its primary competitor, Nvidia.
Huynh made it clear that AMD’s AI strategy includes preserving and strengthening its strong position in data centers. AMD’s EPYC CPUs (Central Processing Units) already have a strong presence in this market, and the firm believes it can go even further by providing the finest GPUs for data centers. This is where the business envisions its future “King of the Hill” goods, with top-tier AI performance as the ultimate aim.
Although AMD is prioritizing AI, Huynh stated that gaming remains an essential component of the company’s strategy. However, the present focus is on growing the business and increasing market share rather than immediately pursuing the most powerful gaming GPUs. This plan echoes Nvidia’s approach, which has also experienced a move toward AI, with both firms shortening development cycles to deploy new chip designs faster than ever before.
This shift in focus comes as no surprise. AMD, like Nvidia, realizes that it cannot build every type of processor at once and must select where it sees the greatest opportunity for growth. While this may result in delays in the introduction of new gaming GPUs, there is hope that advances in AI technology may eventually help all sorts of processors, including those used in gaming.
Despite this transition, gamers want AMD to reclaim its market leadership with low-cost, high-performance graphics cards. GPU prices have skyrocketed in recent years, often with no matching performance gains. AMD’s return to value-oriented GPUs may shake up the industry, particularly in the $300-$400 price band, where many gamers now prefer Nvidia’s products.
Summary
AMD, a technology industry leader, is realigning its objectives by focusing on AI (Artificial Intelligence) chips rather than developing high-end gaming GPUs. This strategy move underscores the rising relevance of AI and the company’s ambitions to gain a greater market share, particularly in data centers. The transition is part of AMD’s new “UDNA” strategy, which combines gaming and data center graphics into a single, unified approach that prioritizes AI.
This article was originally written by Sean Hollister, a senior editor at The Verge, and the original piece can be found on The Verge’s website. You can check out the full article here.
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