13-6-2023 (SAN FRANCISCO) Advanced Micro Devices (AMD) is set to disclose new details about its highly anticipated AI “superchip” that industry analysts believe will pose a significant challenge to Nvidia Corp’s dominance in the rapidly growing artificial intelligence market.
During a keynote address in San Francisco, AMD CEO Lisa Su will outline the company’s strategy in the data center and AI sectors. Analysts are eagerly anticipating more information about the MI300 chip, which is AMD’s most advanced graphics processing unit (GPU) and is used by companies like OpenAI to develop innovative products such as ChatGPT.
Currently, Nvidia holds a commanding market share of 80% to 95% in the AI computing market, as noted by analysts. Just last month, Nvidia’s market capitalization briefly reached $1 trillion after the company announced expectations of increased revenue due to securing new chip supplies to meet the surging demand.
Nvidia faces limited competition on a large scale. While Intel Corp and a few startups like Cerebras Systems and SambaNova Systems have introduced competing products, Nvidia’s most substantial sales threat comes from the in-house chip efforts of Alphabet Inc’s Google and Amazon.com’s cloud unit, both of which offer their custom chips to external developers through rental services.
Although AMD’s new chip won’t immediately alter this landscape, Su revealed during an earnings call last month that the MI300 will start generating sales in the fourth quarter, with a more substantial impact expected in 2024.
Nvidia’s dominance stems not only from its chips but also from over a decade of providing software tools to AI researchers, allowing them to anticipate their chip requirements for designs that take years to develop.
Kevin Krewell, principal analyst at TIRIAS Research, highlighted that AMD will need to catch up in both software development and research trends.
“They have to engage with the research community to understand the market’s direction and their necessary course of action well before it becomes critical,” Krewell explained.
