Advanced Micro Devices introduced its new AI "superchip" at the company's Data Center and AI Technology Premiere event in San Francisco earlier this week.
Analysts predict the new technology will challenge rival Nvidia in the fast-growing artificial intelligence market.
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At the AMD event, CEO Lisa Su gave a keynote address on the company's strategy in the data center and AI markets and the new chip called MI300X, the chipmaker’s most advanced graphics processing unit (GPU).
"Today, we took another significant step forward in our data center strategy as we expanded our fourth generation EPYC processor family with new leadership solutions for cloud and technical computing workloads and announced new public instances and internal deployments with the largest cloud providers," Su said.
"AI is the defining technology shaping the next generation of computing and the largest strategic growth opportunity for AMD," she added. "We are laser focused on accelerating the deployment of AMD AI platforms at scale in the data center, led by the launch of our Instinct MI300 accelerators planned for later this year and the growing ecosystem of enterprise-ready AI software optimized for our hardware."
The MI300 falls into a category of chips that companies like OpenAI use to develop products such as ChatGPT.
To date, Nvidia controls the AI computing market with 80% to 95% of the market share, according to analysts.
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Last month, Nvidia predicted a spike in revenue after receiving new chip supplies that sent the company’s market capitalization to $1 trillion.
Industry competitors include Intel Corp Cerebras Systems and SambaNova Systems, Nvidia’s greatest market foes remain Alphabet Inc's Google and Amazon.com's cloud unit, both of which rent their custom chips to outside developers.
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While AMD's new chip is not expected to make an immediate impact. Su told investors in an earnings call last month that the MI300 will start generating sales in the fourth quarter, but "will be more meaningful in 2024."
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Reuters contributed to this report.
