TAIPEI – Advanced Micro Devices (AMD) unveiled its latest artificial intelligence processors on Monday and detailed its ambitious plan to develop AI chips over the next two years, marking a bold challenge to industry leader Nvidia.
At the Computex technology trade show in Taipei, AMD CEO Lisa Su introduced the MI325X accelerator, which is set to be made available in the fourth quarter of 2024. This launch represents a significant step for AMD as it seeks to solidify its position in the rapidly growing AI semiconductor market.
The race to develop generative artificial intelligence programs has led to towering demand for the advanced chips used in AI data centers capable of supporting these complex applications. In this competitive landscape, AMD has been striving to catch up to Nvidia, which currently dominates the lucrative market for AI semiconductors, commanding about 80% of the market share.
Since last year, Nvidia has made it clear to investors that it plans to shorten its release cycle to annually. Now, AMD has adopted a similar strategy to stay competitive.
“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 reporters. “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.”
AMD also introduced an upcoming series of chips titled MI350, expected to be available in 2025 and based on new chip architecture. Compared to the currently available MI300 series of AI chips, AMD expects the MI350 to perform 35 times better in inference—the process of computing generative AI responses.
Additionally, AMD revealed the MI400 series, which will arrive in 2026 and will be based on an architecture called “Next”. These advancements highlight AMD’s commitment to continuous innovation and its determination to offer competitive alternatives to Nvidia’s offerings.
Nvidia CEO Jensen Huang had said on Sunday that the company’s next-generation AI chip platform, called Rubin, set to be rolled out in 2026, would include GPUs, CPUs, and networking chips.
Investors, who have poured billions of dollars into Wall Street’s picks-and-shovels trade, have been seeking longer-term updates from chip firms to evaluate the longevity of the booming genAI rally, which so far has shown no signs of slowing down.
AMD shares were flat, while Nvidia’s were up more than 3% on Monday. Although AMD has more than doubled in value since the start of 2023, the surge pales in comparison to the more than seven-fold rise in Nvidia’s shares in the same period.
“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.
| Metric | AMD Performance | Nvidia Performance |
|---|---|---|
| Share Price Change | Flat | +3% |
| Value Increase in 2023 | More than doubled | Seven-fold rise |
AMD’s Su said in April that the company expects AI chip sales of roughly $4 billion for 2024, an increase of $500 million from its prior estimate. This optimistic forecast underscores the company’s confidence in its new product lineup and its ability to capture a larger market share.
At the Computex event, AMD also said its latest generation of central processor units (CPUs) will likely be available in the second half of 2024. While businesses generally prioritize spending on AI chips in data centers, some of AMD’s CPUs are used in conjunction with graphics processor units (GPUs), though the ratio is skewed in favor of GPUs.
AMD detailed the architecture for its new neural processing units (NPUs), which are dedicated to handling on-device AI tasks in AI PCs. Chipmakers have been banking on added AI capabilities to drive growth in the PC market as it emerges from a years-long slump.
PC providers such as HP and Lenovo will release devices that include AMD’s AI PC chips. AMD said its processors exceed Microsoft’s Copilot+ PC requirements. This move is expected to invigorate the PC market by offering enhanced performance and AI capabilities.
- MI325X Accelerator: Set to launch in Q4 2024.
- MI350 Series: Expected in 2025, with 35 times better performance in AI inference.
- MI400 Series: Scheduled for 2026, based on “Next” architecture.
- Investor Confidence: AMD’s AI chip sales forecast raised to $4 billion for 2024.
- PC Market Revival: New NPUs and AI PC chips from AMD to be included in HP and Lenovo devices.
AMD’s aggressive push into the AI chip market with the introduction of the MI325X accelerator and the future MI350 and MI400 series signifies a clear intent to challenge Nvidia’s dominance. By adopting an annual release cycle and focusing on innovation, AMD aims to offer competitive alternatives that meet the evolving demands of AI data centers and the PC market. As the competition between AMD and Nvidia intensifies, the advancements in AI technology promise to drive significant growth and transformation across various sectors.
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Featured Image courtesy of Asharq Al-Awsat