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On Tuesday, Advanced Micro Devices is expected to reveal new details about an artificial intelligence “superchip” that analysts believe will be a strong competitor to Nvidia Corp., whose chips dominate the fast-growing artificial intelligence market.
AMD CEO Lisa Su will deliver a keynote at an event in San Francisco on the company’s strategy in the data center and AI markets. Analysts are anticipating new details about a chip called the MI300, AMD’s most advanced graphics processing unit (GPU), the class of chips that companies like OpenAI use to develop products like ChatGPT.
Nvidia dominates the AI computing market with 80% to 95% market share, according to analysts. Last month, Nvidia’s market capitalization briefly touched $1 trillion after the company said it expected a jump in revenue after it secured new supplies of chips to meet growing demand.
Nvidia has a few competitors that are running at scale. While Intel Corp. and several startups like Cerebras Systems and SambaNova Systems have competing products, the biggest threat to Nvidia’s sales to date are Google’s in-house chip efforts Alphabet Inc and cloud unit Amazon.com, both of which lease their custom chips to outside developers.
AMD’s new chip won’t change that right away. Su told investors during an earnings call last month that the MI300 would start to generate sales in the fourth quarter, but “it will be more significant in 2024.”
Additionally, Nvidia’s leadership has come not just from its chips, but from more than a decade of providing software tools to AI researchers and learning to anticipate what they’ll need in chips that take years to design.
AMD will have to catch up with both software and research trends, said Kevin Crewell, principal analyst at TIRIAS Research.
“They have to connect with the research community to understand what the market is doing and what they need to do, long before something becomes important,” Crewell said.
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