AMD challenges Nvidia and Intel with new AI and server CPUs
AMD has unveiled its latest artificial intelligence (AI) chips at the Advancing AI 2024 event in San Francisco, signalling a major push to compete with AI market leader Nvidia and long-time rival Intel. With the introduction of new 5th Gen EPYC CPUs, AI accelerators like the MI325X, and Ryzen AI PRO processors, AMD is positioning itself as a leader not only in server CPUs but also in the broader AI-driven tech space.
AMD’s newly launched products
One of the major highlights of AMD’s announcements was its 5th Gen EPYC central processing units (CPUs), designed for servers. These new chips are built to deliver exceptional performance in data-intensive applications like video transcoding and high-performance computing. The new EPYC 9965 chips are positioned as a response to Intel’s Xeon server chips, with AMD claiming significant performance advantages. According to AMD, the EPYC 9965 chips, priced at $14,813, outpace Intel’s 5th Gen Xeon chips in several key areas.
Another key product launched at the event was the Instinct MI325X AI accelerator, a chip designed to power data centres handling AI workloads. The MI325X is packed with advanced features, including 256GB of HBM3E memory, which is crucial for handling large AI models and datasets. It also boasts superior memory bandwidth compared to its rivals, making it ideal for demanding AI applications.
AMD did not shy away from comparing the MI325X to Nvidia’s H200 AI chip. According to AMD, the MI325X offers 1.8 times higher memory capacity and 1.3 times greater bandwidth, positioning it as a strong alternative to Nvidia’s widely used AI accelerator in data centres.
AMD also introduced the Ryzen AI PRO 300 series, which brings AI capabilities to enterprise PCs. The Ryzen AI PRO 300 processors are built to meet the growing demand for AI-powered features in personal computers. These chips are targeted at businesses and enterprises that require advanced AI capabilities, such as enhanced security and productivity tools.
AMD claims that its high-end Ryzen AI 9 HX PRO 375 outperforms Intel’s Core Ultra 7 165U, offering 40% better AI performance and 14% faster productivity. However, it is important to note that Intel has already announced its next-gen Core Ultra chips, which will likely intensify the competition in this space.
AMD vs. Nvidia and Intel
AMD has made significant strides in the data centre market, with its AI chips and server CPUs gaining traction among enterprises. In its most recent quarter, AMD reported a 115% year-over-year increase in Data Centre sales, reaching $2.8 billion. This growth highlights the increasing demand for AMD’s products in a market historically dominated by Intel and Nvidia.
While AMD’s data centre growth is impressive, it still trails behind Nvidia, whose Data Centre revenue hit a staggering $26.3 billion, up 154% year-over-year. Meanwhile, Intel continues to face challenges, with its Data Centre revenue falling 3% year-over-year to $3 billion.
AI is driving a massive transformation in the data centre industry, with companies investing heavily in new infrastructure to support AI workloads. The rise of AI accelerators like AMD’s MI325X is a direct response to this trend, as data centres need more power to handle the increasing complexity of AI tasks.
AMD’s plans
AMD is not stopping with the MI325X. The company is already gearing up for its MI350X, set to debut in the second half of 2024. The MI350X is slated for release in late 2024, and anticipation is already building around what it could mean for AI computing and the competitive landscape between AMD, Nvidia, and Intel.
As AMD prepares to launch the MI350X, Nvidia is working with customers to deploy its next-gen Blackwell-based AI servers. These servers are designed to handle the most demanding AI workloads, positioning Nvidia as a continued leader in this space.
