AMD reveals new A.I. chip to challenge Nvidia's dominance
Lisa Su displays an ADM Instinct M1300 chip as she delivers a keynote address at CES 2023 at The Venetian Las Vegas on January 04, 2023 in Las Vegas, Nevada.
AMD said on Tuesday its most-advanced GPU for artificial intelligence, the MI300X, will start shipping to some customers later this year.
AMD's announcement represents the strongest challenge to Nvidia , which currently dominates the market for AI chips with over 80% market share, according to analysts.
GPUs are chips used by firms like OpenAI to build cutting-edge AI programs such as ChatGPT.
If AMD's AI chips, which it calls "accelerators," are embraced by developers and server makers as substitutes for Nvidia's products, it could represent a big untapped market for the chipmaker, which is best known for its traditional computer processors.
AMD CEO Lisa Su told investors and analysts in San Francisco on Tuesday that AI is the company's "largest and most strategic long-term growth opportunity."
"We think about the data center AI accelerator [market] growing from something like $30 billion this year, at over 50% compound annual growth rate, to over $150 billion in 2027," Su said.
While AMD didn't disclose a price, the move could put price pressure on Nvidia's GPUs, such as the H100, which can cost $30,000 or more. Lower GPU prices may help drive down the high cost of serving generative AI applications.
AI chips are one of the bright spots in the semiconductor industry, while PC sales, a traditional driver of semiconductor processor sales, slump.
Last month, AMD CEO Lisa Su said on an earnings call that while the MI300X will be available for sampling this fall, it would start shipping in greater volumes next year. Su shared more details on the chip during her presentation on Tuesday.
"I love this chip," Su said.
Source: CNBC
