From Observer, June 14:
AMD is vying to challenge Nvidia (NVDA)'s dominance in the booming A.I. computing market.
The generative A.I. boom is fueling an arms race among semiconductor manufacturers, who produce the engines that power large language model applications like ChatGPT. Specifically, the race right now is between two of the industry leaders: Nvidia and AMD (Advanced Micro Devices Inc.).
At a product event yesterday (June 13) AMD announced it will begin shipping the MI300X, its most-advanced graphics processing units (GPUs) designed for artificial intelligence, later this year. The MI300X was first announced in June 2022 and was previously expected to ship next year.
At the event, AMD CEO Lisa Su emphasized that A.I. is the company’s “largest and most strategic long-term growth opportunity.”
“At the center of this are GPUs. GPUs are enabling generative AI,” she said.
A.I. chips, also known as A.I. accelerators, are one of the few bright spots in the semiconductor industry, which is facing slumping demand for personal computers. Su estimates today’s A.I. accelerator market is worth somewhere around $30 billion and set to grow 50 percent every year to reach $150 billion by 2027.
Currently, the market is dominated by Nvidia, which is believed to own 95 percent of the GPU market and more than 80 percent of the A.I. chip sector.
How AMD’s A.I. chip compares with Nvidia’s....
