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AI Processors AMD Debuts Latest Chips in Battle Against Nvidia and Intel

AMD has launched its new AI processors including the EPYC and MI325X chips as it competes with Nvidia and Intel in the rapidly growing AI market.

AI Processors and AMD's New Offerings

AMD (AMD) debuted its latest AI processors during its Advancing AI 2024 event in San Francisco, Calif., on Thursday. The flurry of announcements comes as AMD continues to battle AI market leader Nvidia (NVDA) and looks to take greater market share from longtime rival Intel (INTC) in the server CPU space.

AMD's Latest AI Processors

The company showcased its new 5th Gen AMD EPYC central processing units (CPU) for servers, provided details on its Instinct MI325X AI accelerator, and introduced its Ryzen AI PRO 300 processors for AI PCs aimed at enterprise customers. These innovations are part of **AMD's **strategy to position itself strongly in the competitive landscape of AI technologies.

Shares of AMD fell more than 4% in afternoon trading, despite the optimistic announcements regarding their AI processors. This decline highlights the volatile nature of the tech market, where investor sentiment can shift rapidly based on performance expectations.

AMD contended that its top-of-the-line** 5th Gen EPYC 9965 chips**, priced at $14,813, outperform Intel’s fifth-generation Xeon server chips. Servers running AMD’s processors reportedly offer 4x faster video transcoding times, 3.9x improvements in time to insights, and 1.6x performance per core in virtualized infrastructure. These improvements are significant for data-intensive applications in industries such as media, entertainment, and scientific research.

Competing with Intel and Nvidia

Intel debuted its next-generation Xeon 6 chip in September, but AMD claims it hasn’t been able to test it against its EPYC chip yet. On the AI accelerator front, AMD provided more details about its MI325X chip, asserting that it surpasses Nvidia’s popular H200 AI chip in memory bandwidth and capacity, featuring** 256GB of HBM3E**. This high-bandwidth memory is crucial for AI workloads, enabling faster processing and improved performance.

According to AMD, the MI325X has 1.8x higher memory capacity than Nvidia’s H200 and 1.3x more bandwidth. Companies including Dell (DELL),** Eviden**, Gigabyte, HPE (HPE), Lenovo (LNVGF), and Super Micro Computer (SMCI) will begin offering MI325-based platforms in the first quarter of 2025. This partnership approach is expected to enhance market penetration and provide customers with more options for high-performance computing.

AMD also announced plans for the MI350X, a follow-up to the MI325X, which will debut in the second half of next year. Meanwhile, Nvidia is working with customers to deploy its next-generation Blackwell-based AI servers. This ongoing innovation cycle underscores the rapid pace of development in the AI sector, where companies are racing to bring the latest technologies to market.

Market Dynamics

The data center has become a competitive battleground for AMD, Nvidia, and Intel as these companies seek to capitalize on the ongoing AI gold rush. AMD reported record Data Center sales of $2.8 billion, up 115% year over year, although this is significantly lower than Nvidia’s Data Center revenue of $26.3 billion, which jumped 154% year over year. These figures indicate a robust demand for AI solutions across various industries.

Intel faces challenges as its Data Center revenue dropped** 3% year** over year to $3 billion, a trend that reflects a broader downturn, with a staggering 20% decline in full-year 2023 Data Center revenue compared to 2022. This situation has prompted Intel to undertake a massive turnaround effort, focusing on innovation and competitive pricing to regain market share.

New AI PCs

AMD also showcased its new Ryzen AI PRO 300 processors for enterprise PCs. The high-end version, the Ryzen AI 9 HX PRO 375, boasts 40% better performance and 14% faster productivity performance than Intel’s Core Ultra 7 165U chip. This performance leap positions AMD as a compelling choice for businesses looking to enhance productivity through advanced computing capabilities.

However, the 165U is one of Intel’s first-generation processors, and the company has announced second-generation Core Ultra chips, promising improved performance and battery life. The rivalry between AMD and Intel in the AI PC space is expected to heat up as both companies release new products targeting enterprise customers.

Both AMD and Intel are optimistic that AI PCs will boost sales as enterprise and commercial customers look to upgrade their aging devices. Despite the hype surrounding AI processors, PC shipments fell in the third quarter. With the holiday season approaching, both companies have a crucial opportunity to convince consumers of the advantages of AI PCs.

Conclusion

AMD's debut of its latest AI processors underscores the ongoing battle with Nvidia and Intel in the rapidly expanding AI market. As competition heats up, the ability to offer superior products will be key in attracting customers and driving sales. The future of AI technology looks promising, and AMD's strategic initiatives may position it well for growth in this dynamic landscape.