On Thursday, AMD unveiled a new AI chip that directly targets the GPUs, or data centre graphics processors, made by Nvidia.
During an event on Thursday to announce the new device, AMD stated that the chip, known as the Instinct MI325X, will go into production before the end of 2024.
It might put pressure on Nvidia’s pricing, as the company has enjoyed approximately 75% gross margins while its GPUs have been in strong demand for the past year, if developers and cloud giants view AMD’s AI chips as a close equivalent for Nvidia’s products.
A greater number of businesses are now producing AI chips because advanced generative AI, like OpenAI’s ChatGPT, needs enormous data centres packed with GPUs to perform the required processing.
AMD has always ranked second, although Nvidia has recently controlled the bulk of the data centre GPU market.
At this point, AMD wants to overtake its adversary in Silicon Valley or at the at least, acquire a sizable portion of the industry, which it estimates will be valued at $500 billion by 2028.
Source (CNBC)
