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AMD launches new AI chips to take on leader Nvidia

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AMD launches new AI chips to take on leader Nvidia
AMD unveiled the MI400 series, which would be built on the “Next” architecture and launch in 2026.

In an attempt to take on market leader Nvidia, Advanced Micro Devices introduced its newest AI processors on Monday along with a roadmap for developing AI chips over the next two years.

The MI325X accelerator was unveiled by AMD CEO Lisa Su at the Computex technology trade expo in Taipei. It is scheduled for release in the fourth quarter of 2024.

The race to create generative AI applications has resulted in an enormous demand for the cutting-edge chips needed in AI data centres that can handle these intricate applications.

AMD has been fighting to challenge Nvidia, which now holds a commanding 80% market share in the lucrative AI chip sector.

AMD has now joined Nvidia in shortening its release cycle to once a year, as Nvidia has been making plain to investors since last year.

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“We have really harnessed all of the development capability within the company to do that,” Su said to reporters. “AI is clearly our number one priority as a company.”

The reason behind this yearly cycle is that the market demands newer goods with newer features. We always have the most competitive portfolio because we have the next big thing every year.

AMD also unveiled the MI350 chip series, which will be built on a revolutionary chip architecture and should go on sale in 2025.

AMD stated that it anticipates the MI350 to perform 35 times better in inference—the process of calculating generative AI responses—than the MI300 family of AI chips already on the market.

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 in order to assess how long the soaring genAI rally will last—so far, no signs of a slowdown.

On Monday, Nvidia’s shares increased by more than 3%, while AMD’s were unchanged. Since the beginning of 2023, AMD’s value has more than doubled, but the increase is nothing compared to the more than seven-fold rise in Nvidia’s shares in the same period.

Chief analyst Bob O’Donnell of Technalysis Research stated, “While the proof will be in the pudding, 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.”

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 stated at Computex that the second half of 2024 will probably see the release of its most recent generation of central processor units.

Though the ratio is skewed in favour of GPUs, some of AMD’s CPUs are utilised in conjunction with graphics processing units (GPUs), even though corporations typically prioritise spending on AI processors in data centres.

The new neural processing units (NPUs) from AMD, which are intended to handle on-device AI tasks in AI PCs, have been described in full.

Chipmakers have been counting on increased AI capabilities to propel PC market expansion as it bounces back from a protracted downturn.

Devices with AMD’s AI PC chips will be released by PC manufacturers including HP and Lenovo. AMD claimed that their CPUs meet or surpass Microsoft’s Copilot+ PC specifications.

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