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03/06/24
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AMD Launches New AI Chips, Challenging Nvidia
On Monday, AMD released its latest AI processors and said it was planning to develop artificial intelligence chips over the next two years in an effort to challenge Nvidia, the industry leader.
Advanced Micro Devices CEO Lisa Su introduced the MI325X accelerator at the Computex technology trade show in Taipei, which she said would be available in the fourth quarter of this year.
The race to develop generative AI systems has led to massive demand for the chips that are used in AI data centers able to support the complex software.
AMD has been competing against Nvidia, which currently dominates the market for AI semiconductors and holds around 80% of its share.
Nvidia has since last year made it clear that it was planning to shorten its release cycle to annually, and AMD has now done the same.
On Monday, AMD shares were flat and Nvidia was over 3% higher. AMD has more than doubled in value since the beginning of last year, but this pales in comparison to the over 7-fold rise in Nvidia’s shares during the same period.
Technalysis Research chief analyst Bob O’Donnell said there was no doubt that AMD was tackling Nvidia heads-on and companies looking for alternatives will likely be happy to hear what AMD had to say.
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