AMD plans to launch flagship AI chip by year-end, why it may be ‘bad news’ for Nvidia

AMD unveiled its flagship MI300 artificial intelligence (AI) chip in June this year. The US-based company called it the most-advanced GPU for AI. The company CEO Lisa Su has now said that it is set to ramp up production of its flagship chips in the fourth quarter.

AI chips are required to enable the processing of generative AI – a booming market that companies, like Google, Microsoft and OpenAI, among others that offer generative AI programs and tools, are tapping into.

‘High’ customer interest
According to Su, customer interest in the MI300 series chips is “very high” and AMD expanded its work with “top-tier cloud providers, large enterprises and numerous leading AI companies” during the third quarter.

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At the launch, it was reported that Amazon could be the first company to use those chips for Amazon Web Services.

“We’re still working together on where exactly that will land between AWS and AMD, but it’s something that our teams are working together on,” Dave Brown, vice president of elastic compute cloud at Amazon, said at the time.

AMD’s chips, which are in short supply, will present a challenge to market leader Nvidia that currently sells H100 chips. The US-based chipmaker is also working on a strategy to tap the Chinese market which is also seeing investments in the AI technology space.

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In order to sell semiconductors in China, Nvidia modified its H100 chips to comply with US Commerce Department restrictions and AMD is mulling a similar strategy with its MI300 and older MI250 chips.

“Our plan is to, of course, be fully compliant with US export controls. But we do believe there’s an opportunity to develop product(s) for our customer set in China that is looking for AI solutions, and we’ll continue to work in that direction,” Su said on a conference call with analysts.

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