AMD Will Release New Details About "Superchip" AI Which Is Expected To Challenge Nvidia

JAKARTA - Advanced Micro Devices (AMD) on Tuesday, June 13, is expected to reveal new details about the AI's "superchip" which analysts believe will be strong competitors for Nvidia Corp. Its competing product now dominates the fast-growing artificial intelligence chip market.

AMD CEO Lisa Su will give a key address at an event in San Francisco on the company's strategy in the data center market and AI. Analysts expect the latest details on a chip called MI300, AMD's most advanced graphics processing unit (GPU), a chip category the company like OpenAI uses to develop products like ChatGPT.

Nvidia dominated the AI computing market with a market share of 80% to 95%, according to analysts. Last month, Nvidia's market cap had reached $1 trillion after the company said it expects a surge in revenue after successfully gaining new chip supplies to meet growing demand.

Nvidia has few competitors working on a large scale. Although Intel Corp (INTC.O) and several startups such as Cerebras Systems and SambaNova Systems have competing products, Nvidia's biggest sales threat today is internal chip effort at Alphabet Inc's Google and cloud unit Amazon.com, both renting out their custom chips to external developers.

AMD's new chips won't change the situation soon. Su told investors during last month's earnings call that MI300 would start producing sales in the fourth quarter, but "would be more meaningful by 2024."

In addition, Nvidia's advantages come not only from its chips, but also from more than a decade of providing software to AI researchers and their ability to anticipate what is needed in chips that take years to design.

Kevin Krewell, principal analyst at TIRIAS Research, said that AMD must catch up both in terms of software and research trends.

"They have to connect with the research community to understand what the market is doing and what they have to do, long before something becomes important," Krewell said.