AMD Unveils New AI Processors to Challenge Nvidia’s Dominance

AMD unveiled its latest AI processors on Monday and detailed its strategic roadmap for AI chip development over the next two years, aiming to challenge the industry leader Nvidia. At the Computex technology trade show in Taipei, AMD CEO Lisa Su introduced the MI325X accelerator, set to be available in the fourth quarter of 2024. Following the announcement, AMD shares rose by 1.4%, while Nvidia’s shares increased by about 3% before the bell.

The surge in demand for generative artificial intelligence programs has led to a significant need for advanced chips capable of supporting complex AI data centre applications. AMD has been striving to compete against Nvidia, which currently dominates the AI semiconductor market, holding approximately 80% of the market share. Since last year, Nvidia has made it clear to investors that it intends to shorten its release cycle to an annual basis. AMD is now adopting a similar strategy.

AMD Unveils New AI Processors to Challenge Nvidia’s Dominance

“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.”

In addition to the MI325X, AMD introduced the upcoming MI350 series, expected to be available in 2025 and based on a new chip architecture. Compared to the current MI300 series of AI chips, AMD anticipates the MI350 will deliver 35 times better performance in inference, the process of computing generative AI responses. Furthermore, AMD revealed plans for the MI400 series, which will debut in 2026 and feature an architecture called “Next.”

On a similar note, Nvidia CEO Jensen Huang announced that the company’s next-generation AI chip platform, Rubin, set for release in 2026, will include GPUs, CPUs, and networking chips.

Investors, who have invested billions of dollars in the booming AI sector, are keenly watching for long-term updates from chip firms to evaluate the sustainability of the genAI rally, which has shown no signs of slowing down. AMD’s shares have more than doubled since the start of 2023, although this growth still lags behind Nvidia, whose shares have surged more than seven-fold in the same period.

See Also: Nvidia Unveils AI Innovations at Computex: The Dawn of a New Industrial Revolution

In April, Su stated that AMD expects AI chip sales to reach approximately $4 billion in 2024, an increase of $500 million from its previous estimate. At Computex, AMD also announced that its latest generation of central processing units (CPUs) will likely be available in the second half of 2024. While businesses typically prioritize AI chips for data centres, some of AMD’s CPUs are used alongside graphics processing units (GPUs), although the ratio favours GPUs.

AMD also provided details on the architecture for its new neural processing units (NPUs), which are designed to handle on-device AI tasks in AI PCs. Chipmakers are relying on enhanced AI capabilities to drive growth in the PC market, which is emerging from a prolonged slump. PC providers like HP and Lenovo will release devices featuring AMD’s AI PC chips. AMD stated that its processors exceed the requirements for Microsoft’s Copilot+ PC.

With these developments, AMD is positioning itself as a formidable contender in the AI chip market, challenging Nvidia’s dominance and pushing the boundaries of AI technology.

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Onsa Mustafa

Onsa is a Software Engineer and a tech blogger who focuses on providing the latest information regarding the innovations happening in the IT world. She likes reading, photography, travelling and exploring nature.

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