AMD Launches AI Chip To Rival Nvidia's Blackwell

AMD is launching a new chip to rival Nvidia's upcoming Blackwell chips, which Nvidia called the 'world's most powerful chip' for AI when unveiled earlier this year. CNBC reports: The Instinct MI325X, as the chip is called, will start production before the end of 2024, AMD said Thursday during an event announcing the new product. If AMD's AI chips are seen by developers and cloud giants as a close substitute for Nvidia's products, it could put pricing pressure on Nvidia, which has enjoyed roughly 75% gross margins while its GPUs have been in high demand over the past year. In the past few years, Nvidia has dominated the majority of the data center GPU market, but AMD is historically in second place. Now, AMD is aiming to take share from its Silicon Valley rival or at least to capture a big chunk of the market, which it says will be worth $500 billion by 2028.

AMD didn't reveal new major cloud or internet customers for its Instinct GPUs at the event, but the company has previously disclosed that both Meta and Microsoft buy its AI GPUs and that OpenAI uses them for some applications. The company also did not disclose pricing for the Instinct MI325X, which is typically sold as part of a complete server. With the launch of the MI325X, AMD is accelerating its product schedule to release new chips on an annual schedule to better compete with Nvidia and take advantage of the boom in AI chips. The new AI chip is the successor to the MI300X, which started shipping late last year. AMD's 2025 chip will be called MI350, and its 2026 chip will be called MI400, the company said.

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