Tech Giants Meta, OpenAI, and Microsoft to Use AMD’s New AI Chip
At an AMD investor event, Meta, OpenAI, and Microsoft announced that they will be utilizing AMD’s latest AI chip, the Instinct MI300X. This move suggests that leading technology companies are seeking alternatives to the pricey Nvidia graphics processors that have been indispensable for creating and deploying artificial intelligence programs, such as OpenAI’s ChatGPT.
The Instinct MI300X, set to begin shipping early next year, could potentially lower costs for developing AI models. This could place competitive pressure on the surging AI chip sales growth of Nvidia, a major player in the field.
During the event, AMD CEO Lisa Su projected a substantial market for AI chips, estimating it to reach $400 billion or more in 2027. Su expressed hope that AMD will secure a considerable share of this market.
The MI300X, based on a new architecture, boasts 192GB of a high-performance memory known as HBM3. This feature allows for faster data transfer and the accommodation of larger AI models, making it a potential rival to Nvidia’s main AI GPU, the H100.
While AMD is positioning itself as a viable alternative to Nvidia, gaining customer adoption will require careful consideration of pricing and compatibility. The company recently addressed a key shortfall in its software suite, ROCm, to compete with Nvidia’s industry standard CUDA software.
Price will be a crucial factor in persuading customers to choose AMD over Nvidia. The MI300X, expected to be competitively priced, has already been embraced by major tech companies. Meta, Microsoft, and Oracle are among the early adopters of AMD’s new AI chip.
Although AMD isn’t projecting massive sales for the chip just yet, the company believes that the total market for AI GPUs could climb to $400 billion over the next four years – a significant increase from its previous projection. This indicates that the demand for high-end AI chips is on the rise, making AMD’s entry into the market highly anticipated.
While Nvidia currently dominates the AI chip market, AMD is confident that it can secure a substantial stake in the industry. With successful adoption, AMD’s Instinct MI300X has the potential to shake up the AI chip landscape in the coming years.