"Top priority"

New AI processor: AMD takes on Nvidia

Archive image: AMD boss Lisa Su presents the Ryzen 5000 processor.

(Bild: AMD)

AMD wants to challenge global market leader Nvidia with a new generation of special processors for artificial intelligence (AI). "AI is our top priority," said AMD CEO Lisa Su on Monday at the presentation of the "MI325X" chip at the Computex trade fair in Taipei. All development capacities are therefore being pooled for this purpose. As the market expects new products in rapid succession, a new chip generation can be expected every year.

AMD is thus following the example of Nvidia. The global market leader for AI processors had previously announced that it would shorten the product cycle to twelve months. The company currently controls around 80 percent of the global market for high-performance AI chips, which can cost tens of thousands of dollars each. The triumph of computationally intensive AI programs such as ChatGPT is driving up demand for these chips.

Thanks to the "MI300" AI chip presented last year, AMD's share price has more than doubled since the beginning of 2023. However, Nvidia's shares have increased eightfold in value during this period. According to Su, sales of the "MI325X" will start in the fourth quarter of 2024, before the "MI350", which is based on a completely new chip architecture, comes onto the market next year. This will calculate 35 percent faster than the "MI300". The AMD boss held out the prospect of the "MI400" for 2026.

AMD is hoping for sales of around four billion dollars (3.7 billion euros) from AI chips alone in the current year. This is 500 million dollars more than originally targeted. In addition to high-performance processors for data centers, the US company is also focusing on products for a new generation of desktop computers in which some of the AI calculations are performed locally. HP and Lenovo have already announced PCs with these chips.