AMD last Thursday, October 10, launched a new artificial intelligence chip that is aimed directly at competing with Nvidia’s graphics processing units for data centers.
During the event dedicated to the presentation of the new product, the AMD team announced that the manufacturing of this microcircuit will be started before the end of the current year. The new chip is called the Instinct MI325X. It is worth noting that in this case, there may be a price pressure factor for Nvidia. If developers and cloud giants consider AMD AI chips as a kind of close substitute for the mentioned company’s products, the specified probability will become a fact of objective financial reality. It is worth noting that Nvidia is currently the main beneficiary of the so-called artificial intelligence boom. In the summer, the market capitalization of this company crossed the historical mark of $3 trillion.
Advanced generative artificial intelligence, such as ChatGPT from OpenAI, requires massive data centers equipped with graphics processing units. Against the background of this technological circumstance, the demand for AI chips is on a high-intensity growth trajectory.
Nvidia has dominated the majority of the graphics processing units for the data centers market over the past few years. AMD has historically been in second place. At the same time, the company aims to increase its share of the market, which, according to its forecasts, will be worth $500 billion by 2028.
AMD chief executive officer Lisa Su said at the above-mentioned event that artificial intelligence continues to take off and even exceeds expectations.
According to the company, it takes about 34% of the total dollars spent on data center processors.
On Thursday, AMD also announced a new line of central processing units. This product line is called EPYC 5th Gen. Within the framework of this offering chips come in a number of different configurations ranging from a low-cost and low-power 8-core chip that costs $527 to 192-core, 500-watt processors intended for supercomputers that cost $14,813 per microcircuit. AMD claims that the new product line is particularly good for feeding data into AI workloads.
As we have reported earlier, AMD to Acquire Server Maker ZT Systems.
Serhii Mikhailov
Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.
