AMD unveils new AI chips to challenge Nvidia

Advanced Micro Devices (AMD) unveiled its latest AI processors at the Computex technology trade show in Taipei on Monday, signalling its commitment to challenging Nvidia’s dominance in the AI semiconductor market. AMD CEO Lisa Su introduced the MI325X accelerator, set for release in late 2024, and outlined the company’s ambitious roadmap to develop new AI chips annually. The move aligns with Nvidia’s strategy, as both companies race to meet the soaring demand for advanced AI data centre chips essential for generative AI programs.

AMD is not only aiming to compete with Nvidia but also to surpass it with innovations like the MI350 series, expected in 2025, which promises a 35-fold improvement in AI inference performance over current models. The company also previewed the MI400 series, set for 2026, featuring a new architecture called ‘Next’. Su emphasised that AI is the company’s top priority, driving a focus on rapid product development to maintain a competitive edge in the market.

The shift towards an annual product cycle reflects the growing importance of AI capabilities in the tech industry. Investors who have been keenly following the AI chip market have seen AMD’s shares more than double since the start of 2023, though Nvidia’s shares have surged even more dramatically. AMD’s plans include AI chip sales projections of $4 billion for 2024, up $500 million from previous estimates, and introducing new central processor units (CPUs) and neural processing units (NPUs) for AI tasks in PCs.

Why does it matter?

As the PC market looks to rebound from a prolonged slump, AMD is banking on its advanced AI capabilities to drive growth. Major PC providers like HP and Lenovo are set to incorporate AMD’s AI chips in their devices, which already meet Microsoft’s Copilot+ PC requirements. This strategic focus on AI-enhanced hardware highlights AMD’s commitment to staying at the forefront of technological innovation and market demand.