AMD Makes a Bold Push into the AI Market with New Chips, Challenging Nvidia and Intel

Tech 2024-10-11 10:45:35 Source: Network

AMD Makes a Bold Push into the AI Market with New Chips, Challenging Nvidia and IntelAdvanced Micro Devices (AMD) has officially launched its latest artificial intelligence chips at the AdvancingAI2024 event in San Francisco, California on October 11, further intensifying its competition with AI market leader Nvidia and long-time rival Intel. During the event, AMD unveiled a range of new products, including its new fifth-generation AMD EPYC central processing units (CPUs) for servers, the Instinct MI325X AI accelerator, and the Ryzen AIPRO 300 processor, tailored for enterprise customers

AMD Makes a Bold Push into the AI Market with New Chips, Challenging Nvidia and Intel

Advanced Micro Devices (AMD) has officially launched its latest artificial intelligence chips at the AdvancingAI2024 event in San Francisco, California on October 11, further intensifying its competition with AI market leader Nvidia and long-time rival Intel. During the event, AMD unveiled a range of new products, including its new fifth-generation AMD EPYC central processing units (CPUs) for servers, the Instinct MI325X AI accelerator, and the Ryzen AIPRO 300 processor, tailored for enterprise customers.

AMD claims its top-of-the-line fifth-generation EPYC 9965 chip (priced at $14,813) outperforms Intel's fifth-generation Xeon server chips in performance. According to AMD, servers running AMD processors exhibit a 4x improvement in video transcoding time, a 3.9x enhancement in insights time, and a 1.6x boost in per-core performance within virtualized infrastructure.

In the realm of AI accelerators, AMD divulged more details about its MI325X chip. This datacenter processor surpasses Nvidia's highly acclaimed H200 AI chip in terms of memory bandwidth and capacity. The MI325X offers 256GB of HBM3E, a high-bandwidth memory used in AI processors, boasting a 1.8x higher memory capacity and a 1.3x greater bandwidth compared to Nvidia's H200. AMD announced that several companies, including Dell, Eviden, Gigabyte, HPE, Lenovo, and SuperMicro Computer, will start offering MI325-based platforms in the first quarter of 2025. Simultaneously, AMD indicated that they are preparing for the MI350X, the successor to the MI325X, slated for release in the latter half of next year.

Datacenters have emerged as a new battleground for AMD, Nvidia, and Intel, as these companies strive to capitalize on the current AI boom and attract more customers. In the recent quarter, AMD reported record datacenter sales of $2.8 billion, marking a 115% year-over-year growth. However, this figure falls significantly short of Nvidia's datacenter business, which generated $26.3 billion in revenue, representing a 154% surge year-on-year. Conversely, Intel is grappling to reverse its decline in the datacenter market. The company recently reported a 3% year-over-year drop in its datacenter revenue to $3 billion for the last quarter. This downward trend persisted throughout Intel's 2023, with its full-year datacenter revenue plummeting by 20% compared to 2022.

Beyond datacenter products, AMD showcased its new Ryzen AIPRO 300 processor designed for enterprise PCs. The company asserts that the high-end version of its PRO 300, the Ryzen AI9HXPRO 375, delivers a 40% performance advantage and a 14% productivity improvement compared to Intel's CoreUltra 7165U chip. However, it's important to note that the 165U is one of Intel's first-generation CoreUltra processors, and Intel has already announced the second generation of CoreUltra chips, claiming significant advancements in performance and battery life.

Both AMD and Intel are pinning their hopes on AI-powered computers to revitalize PC sales as businesses and commercial customers seek to replace aging computers acquired during the early days of the pandemic. Nonetheless, these efforts have yielded limited success thus far. Despite the hype surrounding AI computers, third-quarter PC shipments still witnessed a decline, according to data from Gartner. While companies have an opportunity to promote the benefits of AI computers to consumers as the holiday season approaches, whether consumers will embrace them remains uncertain.

Despite launching a series of new products, AMD's stock price dipped over 4% during afternoon trading. This might reflect investor cautiousness regarding AMD's ability to achieve success in the fiercely competitive AI market, coupled with profit-taking among investors due to AMD's strong stock performance in recent periods.

In conclusion, AMD is aggressively entering the AI market. Its newly released chip products demonstrate advancements in computing power and memory, further escalating competition with Nvidia and Intel. However, whether AMD ultimately triumphs in the AI market remains to be seen. Market analysts will closely monitor AMD's financial performance over the next few quarters, along with the market share and sales of its new products, to gain a better understanding of its competitive strength in the AI landscape.

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