Advanced Micro Devices (AMD has projected a robust $45 billion market for its data center artificial intelligence processors in the current year, marking a substantial surge from its previous estimate of $30 billion in June. This projection accompanied the launch of a cutting-edge generation of AI chips on Wednesday.
The US-based technology giant introduced two AI data center chips within its MI300 lineup: one tailored for generative AI applications and another optimized for supercomputers. The MI300X, specifically designed for generative AI, incorporates advanced high-bandwidth memory, significantly enhancing performance capabilities.
AMD CEO Lisa Su highlighted a promising outlook for the coming year, stating, “We have a significant supply of AI chips well above $2 billion worth.” This abundant supply has been earmarked for a host of customers, surpassing the $2 billion threshold.
AMD’s move to unveil these new processors was substantiated by the exponential surge in demand for AI chips. The company anticipates the data center AI chip market to skyrocket to around $400 billion by 2027.
Despite Nvidia’s dominance, capturing approximately 80 percent of the AI chip market — including custom processors by tech giants like Google and Microsoft — AMD’s MI300 series, launched on Wednesday, is poised to competitively challenge Nvidia’s flagship AI processors.
Moreover, AMD introduced an updated version of the essential software required to deploy these chips effectively for AI applications, marking a comprehensive stride in bolstering its offerings in this rapidly expanding market.