Advanced Micro Dynamics (AMD) recently announced that it will be jumping into the AI chip market with the MI300X later this year.
AMD CEO Lisa Su made the annoucement at CES 2023 in Las Vegas.
AMD has long been known for its semiconductors which power many of the leading PCs from manufacturers like HP, Lenova, and Dell.
However, the company has lagged in the creation of what is called an AI chip, a silicon processor that is specifically manufactured for the high-intensity processing that is needed by artificial intelligence processing.
All semiconductor companies trail Nvidia which has dominated the AI chip market with an estimated 80% market share.
Nvidia was founded in 1993 and focused on semiconductors for game graphics cards or GPUs.
In 2012 Nvidia was tapped to create a chip for AlexNet, the convolutional neural network that spurred many of the advances that have led directly to large language models like ChatGPT.
Nvidia’s dominance has been a boon for the company which has grown exponentially as the huge AI data processing centers have exploded across the globe.
The company’s market cap has tipped over the scale of $1 trillion.
But the high cost of the processors has opened the door for companies like AMD to develop and release their own chips.
Lisa Su from AMD did not release the cost of the MI300X but many insiders think this is the first step in a price war that will lower the costs for AI computing further spurring the growth of that market.
Su offered her own thoughts stating, “We think about the data center AI accelerator market growing from something like $30 billion this year, at over 50% compound annual growth rate, to over $150 billion in 2027.”