AMD introduced the Instinct MI325X, a new chip intended to rival Nvidia’s data center GPUs, which currently lead the artificial intelligence market. The MI325X is scheduled for production in 2024 to challenge Nvidia’s dominance, as the latter has been profiting from strong GPU demand, yielding gross profit margins of around 75%.
AMD aims to capture a portion of Nvidia’s market share.
The increasing popularity of generative AI technology, like OpenAI ChatGPT, is creating a demand for advanced data centers, leading to new competition opportunities. While Nvidia currently dominates this industry, AMD is aiming to secure a substantial portion of the market share, which is projected to be worth $500 billion by 2028.
AMD CEO Lisa Su discussed the rapid growth of AI and increased investments in the industry during the launch event, emphasizing the company’s involvement. The MI325X, AMD’s latest chip, will be primarily marketed for full servers but pricing details are pending. It succeeds the MI300X and is part of a line that includes the upcoming MI350 in 2025 and the MI400 in 2026, aiming to compete with Nvidia’s future Blackwell series.