AMD Launches MI325X's Latest AI Processor, Challenges Nvidia's Dominance

AMD CEO, Lisa Su, introduced the MI325X accelerator (photo: x @amd)

JAKARTA - Advanced Micro Devices (AMD) launched its newest artificial intelligence (AI) processor on Monday, June 3 and detailed its plans to develop an AI chip in the next two years to challenge industry leader Nvidia.

At the Computax technology exhibition at Taipei, AMD CEO Lisa Su, introduced an MI325X accelerator that will be available in the fourth quarter of 2024.

The race to develop a generative AI program has led to high demand for advanced chips used in AI data centers that are able to support this complex application.

Santa Clara-based AMD, California, is trying to compete with Nvidia, which currently dominates the lucrative AI chip market by controlling about 80% of the market share.

AMD also introduced a upcoming chip series called MI350, which is expected to be available by 2025 and will be based on a new chip architecture.

Compared to the currently available MI300 AI chip series, AMD expects MI350 to perform 35 times better in inference - the process of calculating a generating AI response. In addition, AMD revealed a MI400 series, which will come in 2026 and will be based on an architecture called "Next".

Investors who have invested billions of dollars into Wall Street equipment and equipment trading are looking for long-term updates from chip companies as they evaluate the sustainability of the geneAI spike, which has so far shown no signs of slowing down.

AMD shares have more than doubled since early 2023. However, this spike is still losing compared to Nvidia's more than sevenfold share increase in the same period.

AMD targets a one-year AI chip product cycle. Likewise, Nvidia said it plans to release a new AI chip family every year.

AMD CEO Su said in April that the company expects sales of AI chips to be around $4 billion for 2024, an increase of 500 million US dollars (Rp8.1 trillion) from previous estimates.

At the Computex event, AMD also said the latest generation of central processors (CPU) will likely be available in the second half of 2024.

Although businesses generally prioritize spending on AI chips in data centers, some AMD CPUs are used along with graphics processor units (GPUs), although the ratio is inclined to GPUs.

AMD detailed the architecture for a new Neural Processing Unit (NPU), dedicated to handling AI tasks on devices on AI PCs.

Chip companies have relied on additional AI capabilities to drive growth in PC markets running out of slump for years.

PC providers like HP and Lenovo will release devices that include AMD's PC AI chips. AMD says their processor exceeds Microsoft Copilot + PC requirements.