AMD launches an AI chip called MI325X against its rival Nvidia’s Blackwell.
Key Takeaways
- AMD launches an AI chip called MI325X against its rival Nvidia’s Blackwell.
- Next-generation MI350 series chips will be released in H2 2025 with increased performance.
- New server and PC processors are disclosed based on the Zen 5 architecture.
- AMD announced this week that it has been enhancing ROCm.
On Thursday, AMD introduced a new AI chip called the MI325X in the fourth quarter of the 2024 year, aimed against Nvidia’s data center graphics processors (GPUs).
The CEO of AMD, Lisa Su, announced intentions to launch the company’s next-generation MI350 series chips in the second half of 2025 during an event in San Francisco. These chips will include a new underlying architecture and have 256 GB of HBM3e more memory than the previous MI300X and MI250X chips, which AMD claims will result in much better performance.
AMD’s entry into the AI world comes at a time when the AI chip market is expected to be worth $500 billion by 2028, with major tech giants including Microsoft and Meta pushing demand for advanced processors. Currently, Nvidia has a massive 90% market share, but AMD’s strategy may help it get a more significant foothold in this lucrative sector.
On Thursday, AMD shares dropped 4%, while Nvidia’s shares were up roughly 1%.
AMD is also delivering an improved server CPU that is made to integrate seamlessly with its GPUs, guaranteeing that data flow for complicated AI applications stays efficient. With almost 200 processing cores, this new CPU can increase performance for complex AI workloads by up to 37%.
AMD CEO Lisa Su said at the event,
“AI demand has actually continued to take off and actually exceed expectations. It’s clear that the rate of investment is continuing to grow everywhere.”
The main reason AMD is having trouble gaining market share is that the chips made by its competitors employ CUDA, an AI developer standard programming language. Developers are thus effectively locked within Nvidia’s environment.
In response, AMD announced this week that it has been enhancing ROCm, its rival program, to make it easier for AI developers to convert more of their models to AMD’s chips, which it refers to as accelerators.
AI is causing division and conflict not only inside the AI community but also among the public on sensitive issues such as politics. A recent OpenAI report said the use of ChatGPT by threat actors influences elections, which rings an alarming threat to sensitive areas of human life.
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