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AMD: Meta adopts its cloud chip to support new artificial intelligence strategy

Update time : 2023-06-14 11:51:38

Tuesday, June 14 - Chip giant AMD announced that it will ramp up production of its new artificial intelligence chip MI300X in the fourth quarter to challenge market leader Nvidia, local time in the US. Meanwhile, Meta is adopting AMD's cloud chip to support its new artificial intelligence strategy.

Speaking at a launch event in San Francisco, AMD CEO Lisa Su said the MI300X chip has 192 GB of memory, more than all of Nvidia's current chips. Memory is a key performance metric for chips that handle large AI systems such as ChatGPT. Soo said, "There is no doubt that AI will be a key driver of chip consumption for the foreseeable future." She added that customers will get sample chips in the third quarter and production volumes will ramp up by the end of the year. Soo also highlighted a system that integrates eight MI300X chips into a single computer to compete with similar products from Nvidia.
AMD also revealed that it has started shipping a large number of general-purpose CPU chips called "Bergamo" to Facebook parent Meta, among others. The company does use the Bergamo chip. The chip is part of AMD's data centre business and is designed to meet the needs of cloud computing service providers and other large chip buyers.
However, it won't be easy to challenge Nvidia's dominance, as it has few too strong competitors. Nvidia's leadership comes not only from its chips, but also from more than a decade of providing software tools for artificial intelligence researchers and learning to predict what support they will need in chips that take years to design. AMD on Tuesday updated its ROCM software, which competes with Nvidia's Cuda software platform.
Moor Insights & Strategy analyst Anshel Sag said, "Even though AMD is competitive in terms of hardware performance, people still don't believe its software solution can compete with Nvidia." Nvidia's shares have soared 170 per cent so far this year and hold between 80 and 95 per cent of the artificial intelligence computing market, according to analysts. At the close of trading on Tuesday, Nvidia shares rose 3.9 per cent to close at $410.22 per share, making it the first chipmaker to close with a market capitalisation of more than $1 trillion.
By contrast, AMD failed to impress investors despite releasing an update on its artificial intelligence strategy, with the stock closing down 3.6 per cent on the day. Nevertheless, AMD shares have doubled since the start of the year and touched a 16-month high earlier in the day, driven by optimism that the company is investing in artificial intelligence.

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