AMD's AI Chips Receive Big Orders from Leading Companies

AMD's AI segment will experience rapid growth in the coming years, as revealed by leading analyst Ming-Chi Kuo. Although still dominated by NVIDIA for hardware suppliers, several industry players, including AMD, are also starting to enter the competition.

AMD is predicted to start predicting it will come back, possibly in 2024. However, compared to NVIDIA's dominance, AMD's shipments are estimated to be only about 10% compared to NVIDIA.

This shows that NVIDIA still dominates the AI industry, and AMD will need great efforts to get close to that position. AMD also plans to acquire startups to accelerate the development of their AI software resources, but much work still needs to be done.

Microsoft will buy AMD's AI chips

According to Ming-Chi Kuo, AMD's primary customer for their AI chips in 2024 is Microsoft, where more than 50% of AMD's AI accelerator chip product shipments are from Microsoft. In addition, Amazon is also ready to order products from AMD. While several other companies, such as Meta and Google, are rumored to be testing AI chips from AMD.

The segment that will be worked on is cloud service providers, where the part has software strengths that can overcome the weaknesses of AMD software. This segment is predicted to remain AMD's main focus until 2025.

Kuo also thinks that if the cooperation between Microsoft and AMD goes well and wins orders from Meta and Google, AMD's AI chip shipments are expected to reach 30% or more of NVIDIA's shipments by 2025.

Ming-Chi Kuo also predicts that AMD will have a long cooperation with Microsoft. AMD will also work with Microsoft and OpenAI on AI chips together.

For now, AMD already has AI accelerator chips, including the Instinct MI300 and MI400, which are the spearhead of AMD to compete in this AI industry. Of course, with this existing competition, it will be suitable for future AI technology development—both in terms of technological innovation and the price of marketed components.