On June 3, 2024, AMD launched its latest AI processors at the Computex technology trade show in Taipei. AMD’s CEO, Lisa Su, introduced the MI325X accelerator, set to be available in late 2024. This launch marks AMD’s strategic push to challenge Nvidia, which currently leads the AI semiconductor market with about 80% share.
AMD, based in Santa Clara, California, aims to meet the surging demand for advanced chips essential for AI data centers. These centers power complex AI applications, and AMD’s new AI chips are designed to compete directly with Nvidia’s offerings.
Lisa Su emphasized that AI is AMD’s top priority. The company has concentrated all its development efforts on AI, committing to an annual release cycle for new products. This approach mirrors Nvidia’s strategy, which also involves annual product launches to keep up with market demands for innovative and powerful AI solutions.
Looking ahead, AMD announced the MI350 series, expected in 2025. These chips will feature a new architecture and are projected to deliver 35 times better performance in AI inference tasks compared to the current MI300 series. Following that, AMD plans to release the MI400 series in 2026, based on an advanced architecture named “Next.”
Investors have been keenly watching the semiconductor industry, investing heavily in AI chip manufacturers due to the promising growth in generative AI. AMD’s shares have doubled since the beginning of 2023, though this is modest compared to Nvidia’s sevenfold increase in the same period.
AMD aims to match Nvidia’s one-year product cycle for AI chips. In April, Su projected that AMD’s AI chip sales would reach around $4 billion in 2024, a $500 million increase from previous estimates.
At Computex, AMD also previewed its upcoming CPUs, expected to be available in the second half of 2024. These CPUs, while primarily aimed at data centers, will also work with GPUs, with the majority of AI workloads being handled by GPUs.
Additionally, AMD introduced new neural processing units (NPUs) designed for on-device AI tasks in AI-powered PCs. These NPUs are part of AMD’s strategy to boost growth in the PC market, which has been in decline for years. Major PC manufacturers like HP and Lenovo plan to release devices featuring AMD’s AI PC chips, which meet Microsoft’s Copilot+ PC requirements.
AMD’s latest announcements highlight its commitment to innovation and competition in the AI chip market. The company’s aggressive strategy aims to carve out a significant share of a market currently dominated by Nvidia.
Source: Arsheeya Bajwa, Reuters. You can check out the full article here.
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