AMD launches new data center products to challenge NVIDIA, targeting $2 trillion market pie
As AMD seeks to expand its share of the booming artificial intelligence computing market, it has released a series of new products for data centers that it says will outperform rival Nvidia. AMD unveiled a new generation of microprocessors, upgraded AI chips and a server design at a company event on Thursday. The company says these products represent a significant upgrade over the current lineup and offer advantages over competitors' products. AMD is showing increasing confidence that it is no longer just a distant pursuit of Nvidia. Nvidia’s technology has been leading the large-scale construction of AI data centers. Both the company and AMD believe there is near-insatiable customer demand for the technology and are racing to roll out more powerful chips. However, investors are cautious. AMD shares fell about 4% during the company's announcement of new products on Thursday. As of the press conference, the stock has more than doubled this year, reflecting the market's high expectations for it. AMD CEO Lisa Su. Led by CEO Lisa Su, AMD has achieved significant growth, and Wall Street expects its growth to accelerate further. However, challenging Nvidia is not easy. While AMD is widely seen as a key competitor, Nvidia has grown faster and generated more revenue in a single quarter than AMD did in the entire year. AMD predicts that the AI chip market will soar to US$1.4 trillion by 2030. AI chips are chips used to train and run artificial intelligence software. The company also said that by 2030, the market size of its traditional data center products, namely central processing units, will reach $220 billion. Overall, AMD believes that the market it will compete in will reach $2 trillion by 2030. At the press conference in San Francisco, Su Zifeng was joined on stage by executives from several large technology companies that have pledged to adopt AMD products. These include Anthropic PBC and OpenAI. AMD also showed off its new Helios server rack at the event. This is a design that server manufacturers will adopt and sell themselves, and can carry up to 72 MI400 series chips. AMD said that the MI455 model will achieve significant performance improvements compared to its predecessor, especially in terms of memory processing capabilities and faster and lower-cost generation of results. OpenAI executive Sachin Katti said Helios is expected to be deployed on a "large scale" as the company steps up its efforts to expand its artificial intelligence infrastructure. He told Su Zifeng on stage: "You may have heard that I need to get more computing power faster."