October 10, 2024

AMD has introduced its latest artificial intelligence chip, the Instinct MI325X, focusing to challenge Nvidia’s
dominance in the AI data center and GPU market. This move marks AMD’s effort to capture a larger share of a
growing market that is projected to reach $500 billion by 2028.
The MI325X, which will enter production by the end of 2024, could put pressure on Nvidia, which currently
controls over 90% of the market for AI chips. Nvidia has benefited from high demand for GPUs, particularly in
powering advanced generative AI models like OpenAI’s ChatGPT. AMD hopes its new chip, with advanced
memory capabilities, can outperform Nvidia in certain tasks, such as inference on AI models like Meta’s Llama.
AMD has been developing its software called ROCm to compete with Nvidia’s widely-used CUDA which making it
easier for developers to switch from Nvidia’s to AMD’s hardware. The launch of MI325X is a direct competition to
Nvidia’s Blackwell chips but AMD haven’t disclosed the pricing of the chip yet.
With AI accelerators the company is focusing on its presence in the CPU market. In order to enhance data center
performance and support AI wordloads, AMD has announced a new line of EPYC 5th Gen processors. These
processors range from affordable 8-core models to high-end 192-core chips for supercomputers.
With the MI325X and EPYC CPUs, AMD aims to strengthen its position in both AI and data center markets,
providing an alternative to Nvidia and Intel. While AMD has yet to match Nvidia’s stock performance in 2024, the
new AI chip could attract investor interest as the AI boom continues.

shares were down 4% to $163.75 after the release