SAN FRANCISCO (AP) — In its bid to rival chipmaker Nvidia and cater to the growing demand for AI-powered business tools, Advanced Micro Devices (AMD) has unveiled a new artificial intelligence chip.
The semiconductor company, headquartered in Santa Clara, California, has introduced the MI300X chip, touted as “the world’s most advanced accelerator for generative AI.” Major cloud providers like Amazon and Microsoft are expected to show interest in this chip, although AMD has not disclosed any specific cloud provider partnerships.
According to CFRA senior equity analyst Angelo Zino, AMD’s MI300 processor is likely to attract significant attention from cloud providers and compete with Nvidia’s Grace Hopper Superchip. Zino also noted that AMD’s strengthened collaboration with Microsoft is expected to yield positive results, as there are reports of a custom processor chip being developed for Microsoft’s AI workloads.
AMD is now part of the growing cohort of technology companies aiming to capitalize on the increased interest from businesses in AI tools. These tools have the potential to analyze data, facilitate decision-making, and potentially replace certain tasks currently performed by humans. The focus is particularly on “generative AI” tools, such as ChatGPT, which can generate written content, images, computer code, and other forms of media upon command.
Nvidia, also headquartered in Santa Clara, has established itself as the leading provider of AI chips. This term refers to specialized computing hardware designed to handle the workloads involved in training AI systems using vast amounts of data.
Nvidia’s position in the market has propelled it to become one of the most valuable companies globally. The company recently achieved a market valuation of over one trillion dollars, driven in part by the projected substantial revenue growth resulting from its AI-focused chip offerings.
