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AMD Introduces AI Chips and Annual Release Cycle to Rival Nvidia

Key Insights:

  • AMD’s new MI325X accelerator targets Nvidia and promises enhanced AI performance. It is slated for a Q4 2024 release.
  • AMD adopts an annual release cycle for AI chips, mirroring Nvidia, to meet rising demand and stay competitive.
  • The upcoming MI350 and MI400 series promise significant performance boosts, showcasing AMD’s commitment to AI innovation.

Advanced Micro Devices (AMD) has announced the launch of its latest artificial intelligence processors, positioning itself to challenge Nvidia’s dominance in the AI semiconductor market. AMD CEO Lisa Su announced this at the Computex technology trade show in Taipei.

AMD introduced the MI325X accelerator, scheduled for release in the fourth quarter of 2024. Additionally, AMD detailed its roadmap for AI chip development over the next two years, signaling a strategic move to compete more aggressively with Nvidia, which currently holds around 80% of the AI semiconductor market share.

Strategic Shift to Annual Product Releases

Lisa Su emphasized AMD’s commitment to AI, stating that it has become its top priority. Following Nvidia’s lead, AMD has adopted an annual release cycle for its AI chips to meet the market’s demand for new products and capabilities. Su highlighted that this approach would ensure AMD maintains a competitive portfolio by continuously delivering innovations.

AMD also announced the MI350 series, which is expected to be available in 2025 and promises a 35-fold improvement in inference performance compared to the current MI300 series. The MI400 series, planned for 2026, will be based on an architecture known as “Next,” aiming to further enhance the company’s offerings in the AI chip market.

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Introducing these new AI chips comes amid soaring demand for advanced processors supporting generative AI applications in data centers. Nvidia, a key player in this market, has been transparent about its plans to shorten its release cycle, aiming to stay ahead with annual updates. This strategy has been well-received by investors, contributing to the significant rise in Nvidia’s share value.

AMD’s shares remained flat following the announcement, while Nvidia’s shares rose by more than 3%. Despite this, AMD’s stock has more than doubled in value since the beginning of 2023, although this growth is outpaced by Nvidia’s seven-fold increase over the same period.

Expansion into AI-Enabled CPUs

Beyond AI-specific accelerators, AMD is also enhancing its central processor units (CPUs) to include more AI capabilities. This includes developing neural processing units (NPUs) to handle on-device AI tasks in AI PCs. These advancements aim to boost the PC market, which is experiencing a prolonged slump.

AMD’s latest generation of CPUs will be available in the second half 2024. These processors will meet Microsoft’s Copilot+ PC requirements and will be integrated into devices from PC manufacturers such as HP and Lenovo.

Market Reception and Future Outlook

Industry analysts have been cautiously optimistic about AMD’s push into the AI chip market. Technalysis Research chief analyst Bob O’Donnell noted that while the success of AMD’s strategy will depend on the performance of these new chips, the announcement is likely to be well-received by companies seeking alternatives to Nvidia.

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Lisa Su projected AMD’s AI chip sales in April to reach approximately $4 billion in 2024, up $500 million from earlier estimates. The company’s aggressive development and release plans, which aim to capitalize on the growing AI market, fuel this optimism.

At Computex, AMD also highlighted its latest advancements in chip architecture, positioning itself as a formidable competitor in the AI semiconductor industry. As the race to develop next-generation AI technologies intensifies, AMD’s strategic moves are set to play a crucial role in shaping the future landscape of this rapidly evolving market.

The broader AI chip market is witnessing intense competition as companies strive to develop more powerful and efficient processors. Nvidia’s announcement of its next-generation AI chip platform, Rubin, set for a 2026 release, underscores the industry’s rapid pace of innovation.

Editorial credit: JHVEPhoto / Shutterstock.com


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Curtis Dye

Curtis is a cryptocurrency news and analytics author with a focus on DeFi, BLockchain, CeFi, NFTs etc. He has publication skills such as SEO optimization, Wordpress, Surfer tools and aids his viewers with insights on the volatile crypto industry.

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