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AMD, Intel Take on NVIDIA with Launch of New AI Chips

Advanced Micro Devices (AMD) (NASDAQ:AMD) has fired its latest salvo in the battle for dominance in the artificial intelligence (AI) chip market, unveiling its newest processors at the Computex trade show in Taiwan.

Led by CEO Lisa Su, AMD introduced the MI325X accelerator, slated for release in this year’s fourth quarter.

Reuters notes in a Monday (June 3) article that AMD is looking to challenge NVIDIA (NASDAQ:NVDA), which is the current leader of the AI semiconductor market at 80 percent. The sector is quickly gaining importance as AI applications grow.

Su emphasized that AMD is seeking to go toe-to-toe with the undisputed industry leader.

‘AI is clearly our number one priority as a company and we have really harnessed all of the development capability within the company to do that,’ Reuters quotes her as saying at the Computex event.

In addition to the MI325X accelerator, AMD lifted the curtain on its upcoming series of AI chips, including the MI350 and MI400 chips, which are projected to hit the market in 2025 and 2026, respectively.

AMD’s news follows the unveiling of NVIDIA’s next-generation AI GPU, the Blackwell B200, in March.

Promising a seismic leap in computational power, NVIDIA’s Blackwell architecture boasts significant improvements in AI performance compared to its predecessor, the Hopper H100. In a recent post on X, formerly known as Twitter, Elon Musk revealed his intention to acquire 300,000 Blackwell B200 GPUs by next summer.

As the appetite for AI chips continues to surge, Intel (NASDAQ:INTC) is also looking to step up its game with the announcement of its new Xeon 6 processor at the same tech conference in Taiwan.

“Customers are looking for high performance, cost-effective gen AI training and inferencing solutions. And they’ve started to turn to alternatives like Gaudi. They want choice. They want open software and hardware solutions and time to market solutions at dramatically lower TCOs (total cost of ownership),” said CEO Patrick Gelsinger.

CNBC explains that Intel wants to reclaim market share from NVIDIA and AMD after being left on the sidelines of the AI chip rush. Six months ago the company launched its fifth generation Xeon processors, as well as its Gaudi 3 processor.

Gelsinger also said that prices for Intel’s Gaudi 2 and Gaudi 3 AI accelerators are lower than those of rival chips, indicating Intel’s commitment to providing cost-effective AI solutions.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

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