AMD launched a new artificial-intelligence chip on Thursday that is taking direct aim at Nvidia's data center graphics processors, known as GPUs.
The Instinct MI325X, as the chip is called, will start production before the end of 2024, AMD said Thursday during an event announcing the new product. If AMD's AI chips are seen by developers and cloud giants as a close substitute forproducts, it could put pricing pressure on Nvidia, which has enjoyed roughly 75% gross margins while its GPUs have been in high demand over the past year.
"AI demand has actually continued to take off and actually exceed expectations. It's clear that the rate of investment is continuing to grow everywhere," AMD CEO Lisa Su said at the event. The MI325X's rollout will pit it against Nvidia's upcoming Blackwell chips, which Nvidia has said will start shipping in significant quantities early next year.
AMD has framed its AI accelerators as more competitive for use cases where AI models are creating content or making predictions rather than when an AI model is processing terabytes of data to improve. That's partially due to the advanced memory AMD is using on its chip, it said, which allows it to serve Meta's Llama AI model faster than some Nvidia chips.
AMD takes about 34% of total dollars spent on data center CPUs, the company said. That's still less than, which remains the boss of the market with its Xeon line of chips. AMD is aiming to change that with a new line of CPUs, called EPYC 5th Gen, that it also announced Thursday.
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