Advanced Micro Devices (AMD) is intensifying the process of developing new artificial intelligence processors to improve its competitiveness in the fast-growing and more than the promising market for corresponding products, where Nvidia currently holds an unambiguous leadership position, being the main beneficiary of the high-level of demand for chips necessary for training and ensuring the subsequent operation of AI systems.
The mentioned company, based in Santa Clara, California, designed a new chip called MI325X. Sales of this microcircuit, which debuted on Monday, June 3, will be launched in the fourth quarter of the current year. The relevant information was provided by AMD Chief Executive Officer Lisa Su in the opening keynote at the Computex conference, which is taking place in Taiwan.
The specified chip is a kind of successor to the MI300 and has such positive distinguishing features as more memory and faster data throughput. This was reported by AMD. The company also announced that the MI350 will be presented next year. In 2026, the firm intends to introduce the MI400. Obviously, each of the company’s next chips will have more powerful characteristics that guarantee a higher level of performance.
It is worth noting that AMD’s strategy, which provides for the debut of a new microcircuit every year, corresponds to a kind of Nvidia production approach, which also implies a so-called annual release cycle. Against this background, the desire of the Santa Clara company to compete with the giant of the chip market for artificial intelligence systems and the intention to strengthen its competitive position in this commercial space is obvious, success in which for any company will mean rapid growth of financial indicators.
AMD is one of those firms that seek to use the huge cash flow currently invested in the machine intelligence industry. Nowadays, there is a high level of consumer demand for new artificial intelligence training systems. Nvidia’s offerings dominate the corresponding sector. AMD is committed to getting its share of this promising space.
Lisa Su stated during a speech at a conference in Taiwan that the MI300 is still a very popular product. Also in this context, she noted that the company’s new products will differ favorably from competitors’ offers.
It is worth noting that AMD is showing the most significant progress among firms that seek to compete with Nvidia. The current year, the company increased its sales target for so-called artificial intelligence accelerators to $4 billion. The mentioned growth is definitely rapid compared to the same indicator a year ago. At the same time, AMD’s expectations for sales of artificial intelligence accelerators are significantly lower than what can be called Nvidia’s commercial intensity. However, such a balance of power is not in favor of the company headed by Lisa Su, but in no way cancels the fact of the mentioned progress.
According to preliminary estimates reported by the media, in 2024, the annual sales volume of only one Nvidia unit specializing in data centers will exceed $100 billion. It is worth noting that this figure is higher than the combined annual revenue of AMD and Intel.
The Santa Clara-based company also announced the third generation of Ryzen AI processors, called Strix Point. These products will go on sale next month. Strix Point was developed specifically for laptops and combines RDNA 3.5 mobile graphics, XDNA 2 neural processing units to accelerate artificial intelligence tasks, and the latest Zen 5 processor cores.
The media reported that HP CEO Enrique Lores, Lenovo Executive Vice President Luca Rossi, and Asustek Chairman Jonney Shih discussed with Lisa Su the upcoming computers featuring the new AMD Ryzen platform.
The Santa Clara-based company also demonstrated a slide at a conference in Taiwan, which shows that Strix Point is better able to cope with artificial intelligence tasks compared to Qualcomm’s Snapdragon X Elite, the chip that will feature the new Microsoft Copilot+ personal computers. Microsoft’s chief of Windows, Pavan Davuluri, joined Lisa Su on stage to say that his team has been collaborating with AMD since day one on the Copilot PC+ project. He stated that the artificial intelligence integrated into the device means faster response times, cost-effectiveness, and improved privacy. At the same time, Pavan Davuluri noted that AI models with billions of parameters can be run on personal computers’ hardware. Moreover, he underlined that modern PCs, compared with similar devices that debuted just a few years ago, are distinguished by a 20-fold increase in performance and a 100-fold rise in efficiency for artificial intelligence workloads.
Also at the conference in Taiwan, AMD demonstrated new gaming processors for laptops and desktops. Showing the AMD Ryzen 9 9950X chip to the public, Lisa Su stated that it is the fastest consumer processor in the world. This 16-core processor will be running at speeds up to 5.7GHz in boost mode.
Lisa Su stated that artificial intelligence is a top priority for AMD. According to her, humankind is currently witnessing the initial stage of an incredibly exciting time in which AI is transforming virtually every business, improving the quality of human life, and making changes in every part of the computer market.
It is worth noting that AMD, like Nvidia, does not produce its own chips. The firm outsources the making of microcircuits to foundries, mainly to Taiwan Semiconductor Manufacturing Company.
On Monday, amid news about the presentation of new products, AMD’s share price showed an increase of 1.4%. It is worth noting that since the beginning of 2023, the company’s securities have more than doubled in price. At the same time, Nvidia’s similar indicator has grown more than seven times.
It is still impossible to answer the question of whether AMD will be able to surpass its main competitor or at least equalize positions. It is also worth noting that the corresponding prospect, even in the case of its materialization, is long-term and does not relate to those achievements that can be realized by the Santa Clara-based company shortly.
As we have reported earlier, AMD Reports First-Quarter Earnings.
