US-based computer processor and graphics cards company, Advanced Micro Devices (AMD), while launching its new generation of AI chips on Wednesday, 6th December, has estimated its 2023 market for data centre AI processors to be worth $45 billion,
This projection marks a $15 billion increase from AMD’s $30 billion estimate a year ago, which showed the growing demand for AI-related technologies, and has led AMD to focus on capturing more of the market.
The two new AI data centre chips, part of AMD’s MI300 lineup, cater to specific applications. One chip is designed for generative AI applications, while the other targets supercomputers. The MI300X variant, focusing on generative AI, incorporates advanced high-bandwidth memory to enhance performance.
AMD’s CEO, Lisa Su, revealed during a press briefing that the company has a “significant” supply of AI chips for the upcoming year, exceeding $2 billion in value. This ample supply is poised to meet the demands of a growing customer base. Su was confident that there was strong market potential, stating that AMD expects the data centre AI chip market to reach approximately $400 billion by 2027.
Acknowledging the competition in the AI chip market, particularly with GPU and AI processors maker, Nvidia, holding an estimated 80% of the data centre market, AMD positions its MI300 series to compete directly with Nvidia’s flagship AI processors. Despite Nvidia’s AI chip market dominance, and it making custom processors used by companies like Google and Microsoft, AMD aims to gain a significant share with its latest offerings.
In addition to the hardware, AMD introduced a new version of the software necessary for deploying the AI chips, further strengthening its position in the competitive landscape. As demand for AI-related technologies continues to surge, AMD’s strategic moves and product advancements demonstrate its commitment to being a key player in the evolving market.
