Advanced Micro Devices (AMD) has launched a new artificial intelligence (A.I.) microchip for use in data centres.
The Instinct MI325X chip will compete against industry leader Nvidia’s (NVDA) Blackwell line of processors that are used to run A.I. applications and models.
Known as graphics processing units, or GPUs, the chips are the most advanced when it comes to A.I.
Production of AMD’s Instinct MI325X microchip will start before year’s end, though pricing information has not been made public.
Management at AMD have made clear that they want to take market share from Nvidia, which controls 90% of the market for data centre GPUs.
AMD estimates that the GPU chip market will be worth $500 billion U.S. by 2028.
Previous A.I. chips from AMD, such as its MI300X processor, are being used by technology companies such as Meta Platforms (META) and Microsoft (MSFT) to run their A.I. models.
AMD unveiled the new Instinct MI325X chip at an investor day event. The company’s stock has risen 19% this year to trade at $164.18 U.S. per share.
