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December 07, 2023

AMD Projects $2 Billion Sales in 2024, Launches Chips for Generative AI and Supercomputers

In Brief

Advanced Micro Devices (AMD) launched its new generation of AI chips MI300 and said it expects $2 billion in sales by 2024.

AMD Projects $2 Billion Sales in 2024, Launches Chips for Generative AI and Supercomputers

American Semiconductor company, Advanced Micro Devices (AMD) launched a new generation of AI chips on Wednesday, estimating the market for its data center artificial intelligence processors to reach $45 billion this year, a significant increase from the company’s $30 billion estimate in June.

According to the company, it expects $2 billion in sales by 2024.

The company has a “significant” supply of AI chips for the next year, well surpassing the $2 billion mark, said Lisa Su, CEO of AMD during a press briefing.  Su emphasized the considerable demand, stating, “So there’s a lot of supply that we have – let’s call it reserved – and we have a lot of customers, well above the $2 billion as well.”

The semiconductor giant has introduced two new AI data center chips in their MI300 lineup – AMD Instinct MI300X and AMD Instinct™ MI300A.

With the AMD launch of new processors, company executives also highlighted the surging demand for AI chips. The company anticipates the data center AI chip market to grow to approximately $400 billion by 2027.

New AI Chips to Challenge Nvidia’s Dominance

Several analysts estimate that Nvidia currently holds about 80% of the AI chip market, factoring in custom processors from companies like Alphabet’s Google and Microsoft. Although Nvidia doesn’t disclose specific AI revenue, a substantial portion is attributed to the company’s data center segment.

In contrast, AMD’s MI300 series positions itself as a competitor to Nvidia’s flagship AI processors. AMD also revealed an updated version of the software required to deploy these AI chips.

The first chip is designed for generative AI applications, while the second chip is tailored for supercomputers. The MI300X, the generative AI processor, features advanced high-bandwidth memory to enhance performance.

“AMD Instinct MI300 Series accelerators are designed with our most advanced technologies, delivering leadership performance, and will be in large scale cloud and enterprise deployments,” said Victor Peng, president of AMD.

“By leveraging our leadership hardware, software and open ecosystem approach, cloud providers, OEMs and ODMs are bringing to market technologies that empower enterprises to adopt and deploy AI-powered solutions,” Peng added.

AMD’s recent launch of the MI300 series signifies a significant leap in the competitive AI chip market. With a projected $45 billion market for data center AI processors in 2023 and a sales target of $2 billion by 2024, AMD has set its ambitions high to challenge Nvidia’s dominance.

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About The Author

Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.

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Kumar Gandharv
Kumar Gandharv

Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.

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