AMD is making one of its biggest bets yet on the artificial intelligence boom—and on Anthropic. The chipmaker will invest up to $5 billion in the Claude developer, while Anthropic has agreed to deploy up to 2 gigawatts of AMD Instinct MI450-series GPUs. The first 1 GW deployment is expected to begin in the first half of 2027. The agreement could be worth tens of billions of dollars in hardware sales and comes as AI companies race to secure enormous amounts of computing capacity. For AMD, however, there is another prize: gaining ground on Nvidia, which continues to dominate the market for advanced AI accelerators.<h2>Why Anthropic needs 2 GW of AI chips</h2>Demand for Claude and other generative AI services is pushing Anthropic to build an increasingly diverse computing network. Two gigawatts is an extraordinary amount of computing infrastructure. It is roughly equivalent to the electricity output of two large nuclear power reactors, although actual data-centre power consumption will depend on how the infrastructure is deployed. Anthropic plans to use AMD's Helios rack-scale systems, powered by MI450-series GPUs. According to The Wall Street Journal, some chips could be deployed in Anthropic's own data centres, while additional computing capacity could be leased through cloud and specialised "neocloud" providers. AMD is also reportedly discussing providing financial backing for some future Anthropic data-centre leases.<h2>AMD isn't just selling Anthropic chips</h2>The partnership goes deeper than hardware. AMD and Anthropic engineers will work together to optimise Claude workloads for AMD Instinct GPUs and accelerate development of ROCm, AMD's software platform for AI computing. AMD also plans to use Claude extensively across its own engineering and product development teams. The investment in Anthropic will be tied to deployment milestones rather than being delivered all at once.<h2>Nvidia faces growing pressure</h2>Nvidia remains the company to beat in AI infrastructure, helped by both its GPUs and its deeply established CUDA software ecosystem.But AI companies increasingly want alternatives. AMD has been aggressively pursuing this opportunity. Earlier in 2026, it struck a multi-year agreement with Meta covering up to 6 GW of AMD GPUs. Anthropic now adds another major frontier AI developer to its customer list.Anthropic itself is also spreading its compute requirements across multiple suppliers instead of depending on one company. It already has major infrastructure relationships involving Amazon and Google. That diversification is becoming strategically important as AI models require ever-larger clusters and demand for advanced chips continues to soar. The AMD-Anthropic agreement therefore represents more than another giant chip order. It shows how the AI race is evolving into a competition not only over who builds the smartest model, but also over who can secure enough chips, electricity and data-centre capacity to run it at global scale.

AMD will invest up to $5 billion in Anthropic, while the Claude maker plans to deploy up to 2 GW of AMD Instinct MI450-series GPUs. The massive partnership gives Anthropic more AI compute and strengthens AMD's attempt to challenge Nvidia's dominance.


AMD is making one of its biggest bets yet on the artificial intelligence boom—and on Anthropic. The chipmaker will invest up to $5 billion in the Claude developer, while Anthropic has agreed to deploy up to 2 gigawatts of AMD Instinct MI450-series GPUs. The first 1 GW deployment is expected to begin in the first half of 2027. The agreement could be worth tens of billions of dollars in hardware sales and comes as AI companies race to secure enormous amounts of computing capacity. For AMD, however, there is another prize: gaining ground on Nvidia, which continues to dominate the market for advanced AI accelerators. Why Anthropic needs 2 GW of AI chips Demand for Claude and other generative AI services is pushing Anthropic to build an increasingly diverse computing network. Two gigawatts is an extraordinary amount of computing infrastructure. It is roughly equivalent to the electricity output of two large nuclear power reactors, although actual data-centre power consumption will depend on how the infrastructure is deployed. Anthropic plans to use AMD's Helios rack-scale systems, powered by MI450-series GPUs. According to The Wall Street Journal, some chips could be deployed in Anthropic's own data centres, while additional computing capacity could be leased through cloud and specialised "neocloud" providers. AMD is also reportedly discussing providing financial backing for some future Anthropic data-centre leases. AMD isn't just selling Anthropic chips The partnership goes deeper than hardware. AMD and Anthropic engineers will work together to optimise Claude workloads for AMD Instinct GPUs and accelerate development of ROCm, AMD's software platform for AI computing. AMD also plans to use Claude extensively across its own engineering and product development teams. The investment in Anthropic will be tied to deployment milestones rather than being delivered all at once. Nvidia faces growing pressure Nvidia remains the company to beat in AI infrastructure, helped by both its GPUs and its deeply established CUDA software ecosystem. But AI companies increasingly want alternatives. AMD has been aggressively pursuing this opportunity. Earlier in 2026, it struck a multi-year agreement with Meta covering up to 6 GW of AMD GPUs. Anthropic now adds another major frontier AI developer to its customer list. Anthropic itself is also spreading its compute requirements across multiple suppliers instead of depending on one company. It already has major infrastructure relationships involving Amazon and Google. That diversification is becoming strategically important as AI models require ever-larger clusters and demand for advanced chips continues to soar. The AMD-Anthropic agreement therefore represents more than another giant chip order. It shows how the AI race is evolving into a competition not only over who builds the smartest model, but also over who can secure enough chips, electricity and data-centre capacity to run it at global scale.

AMD will invest up to $5 billion in Anthropic, while the Claude maker plans to deploy up to 2 GW of AMD Instinct MI450-series GPUs. The massive partnership gives Anthropic more AI compute and strengthens AMD's attempt to challenge Nvidia's dominance.

AMD to invest up to $5 billion in Anthropic as Claude maker orders 2 GW of AI chips

Lisa Su just made the most aggressive move of AMD's history. At the Advancing AI 2026 conference in San Francisco, she unveiled the hardware AMD believes can break Nvidia's stranglehold on artificial intelligence — and she brought receipts: OpenAI, Meta, Microsoft, and Oracle have all signed up.&nbsp;The MI450: AMD's AI Superchip&nbsp;The centrepiece of the event was the Instinct MI450, AMD's next-generation AI accelerator. The chip packs 432 gigabytes of HBM4 memory — high-bandwidth memory that is the critical bottleneck in training large AI models. AMD claims the MI450 delivers roughly 10 times the training performance of the MI300X, the company's current flagship.&nbsp;Whether that multiplier holds in real-world workloads remains to be seen — vendor performance claims at launch events routinely overstate gains compared to independent benchmarks. But even discounted, the MI450 represents a generational leap that puts AMD in direct competition with Nvidia's Blackwell architecture for the first time at the frontier scale.&nbsp;EPYC Venice: The First 2nm Server CPU&nbsp;Alongside the GPU, AMD unveiled EPYC Venice — the first x86 server processor in volume production on TSMC's 2-nanometre process node. The move to 2nm gives Venice a significant power-efficiency advantage over current server CPUs, which matters enormously in data centres where electricity consumption is becoming the binding constraint on scale.&nbsp;Venice is designed to pair with the MI450 in AMD's Helios rack system, a fully integrated AI training platform that AMD is positioning as a turnkey alternative to Nvidia's DGX infrastructure. The rack delivers 31 terabytes of HBM4 memory across its GPU complement.&nbsp;The Customer Commitments&nbsp;Hardware specifications are one thing. Customer commitments are another, and here AMD delivered its strongest evidence yet that the industry is ready to diversify beyond Nvidia.&nbsp;OpenAI has committed to 6 gigawatts of AMD GPU capacity under a multi-generation agreement signed in October 2025, with the first gigawatt of MI450 deployments beginning in the second half of 2026. Meta signed a matching 6-gigawatt deal in February 2026, centred on custom MI450 GPUs paired with Venice CPUs. Microsoft and Oracle have also committed to significant AMD deployments, absorbing what AMD says is the near-term supply.&nbsp;Six gigawatts is an extraordinary number. For reference, a typical nuclear power plant generates about one gigawatt. OpenAI alone has committed to the AI computing equivalent of six nuclear plants' worth of AMD hardware.&nbsp;The Nvidia Challenge&nbsp;AMD's pitch is straightforward: comparable performance at competitive pricing, with an open software ecosystem built on ROCm 7 that avoids the lock-in of Nvidia's proprietary CUDA platform. The problem has always been software maturity — Nvidia's CUDA ecosystem has a decade-long head start, and most AI researchers and engineers have built their workflows around it.&nbsp;AMD is betting that the sheer scale of demand — and the desire of companies like OpenAI and Meta to avoid single-supplier dependency — will overcome the switching costs. The gigawatt-scale commitments suggest that bet is working, at least at the hyperscaler level.&nbsp;What Comes Next&nbsp;Su also previewed the MI500, scheduled for 2027, which AMD claims will deliver 1,000 times the training performance of the MI300X. That claim is aspirational and should be treated accordingly — but the roadmap signals that AMD views AI hardware as its defining business for the rest of the decade.&nbsp;The AI chip market has been Nvidia's monopoly for the past three years. AMD's Advancing AI event did not end that monopoly. But 12 gigawatts of committed capacity from OpenAI and Meta, the first 2nm server CPU, and a GPU with 432GB of HBM4 represent the most credible challenge Nvidia has faced since the AI boom began.

At Advancing AI 2026, AMD unveiled the MI450 with 432GB HBM4, EPYC Venice on TSMC 2nm, and the Helios rack. OpenAI committed 6 gigawatts of AMD GPUs, Meta matched with 6GW more — the most serious challenge to Nvidia's AI dominance.

Lisa Su just made the most aggressive move of AMD's history. At the Advancing AI 2026 conference in San Francisco, she unveiled the hardware AMD believes can break Nvidia's stranglehold on artificial intelligence — and she brought receipts: OpenAI, Meta, Microsoft, and Oracle have all signed up. The MI450: AMD's AI Superchip The centrepiece of the event was the Instinct MI450, AMD's next-generation AI accelerator. The chip packs 432 gigabytes of HBM4 memory — high-bandwidth memory that is the critical bottleneck in training large AI models. AMD claims the MI450 delivers roughly 10 times the training performance of the MI300X, the company's current flagship. Whether that multiplier holds in real-world workloads remains to be seen — vendor performance claims at launch events routinely overstate gains compared to independent benchmarks. But even discounted, the MI450 represents a generational leap that puts AMD in direct competition with Nvidia's Blackwell architecture for the first time at the frontier scale. EPYC Venice: The First 2nm Server CPU Alongside the GPU, AMD unveiled EPYC Venice — the first x86 server processor in volume production on TSMC's 2-nanometre process node. The move to 2nm gives Venice a significant power-efficiency advantage over current server CPUs, which matters enormously in data centres where electricity consumption is becoming the binding constraint on scale. Venice is designed to pair with the MI450 in AMD's Helios rack system, a fully integrated AI training platform that AMD is positioning as a turnkey alternative to Nvidia's DGX infrastructure. The rack delivers 31 terabytes of HBM4 memory across its GPU complement. The Customer Commitments Hardware specifications are one thing. Customer commitments are another, and here AMD delivered its strongest evidence yet that the industry is ready to diversify beyond Nvidia. OpenAI has committed to 6 gigawatts of AMD GPU capacity under a multi-generation agreement signed in October 2025, with the first gigawatt of MI450 deployments beginning in the second half of 2026. Meta signed a matching 6-gigawatt deal in February 2026, centred on custom MI450 GPUs paired with Venice CPUs. Microsoft and Oracle have also committed to significant AMD deployments, absorbing what AMD says is the near-term supply. Six gigawatts is an extraordinary number. For reference, a typical nuclear power plant generates about one gigawatt. OpenAI alone has committed to the AI computing equivalent of six nuclear plants' worth of AMD hardware. The Nvidia Challenge AMD's pitch is straightforward: comparable performance at competitive pricing, with an open software ecosystem built on ROCm 7 that avoids the lock-in of Nvidia's proprietary CUDA platform. The problem has always been software maturity — Nvidia's CUDA ecosystem has a decade-long head start, and most AI researchers and engineers have built their workflows around it. AMD is betting that the sheer scale of demand — and the desire of companies like OpenAI and Meta to avoid single-supplier dependency — will overcome the switching costs. The gigawatt-scale commitments suggest that bet is working, at least at the hyperscaler level. What Comes Next Su also previewed the MI500, scheduled for 2027, which AMD claims will deliver 1,000 times the training performance of the MI300X. That claim is aspirational and should be treated accordingly — but the roadmap signals that AMD views AI hardware as its defining business for the rest of the decade. The AI chip market has been Nvidia's monopoly for the past three years. AMD's Advancing AI event did not end that monopoly. But 12 gigawatts of committed capacity from OpenAI and Meta, the first 2nm server CPU, and a GPU with 432GB of HBM4 represent the most credible challenge Nvidia has faced since the AI boom began.

At AMD's Advancing AI 2026 event in San Francisco, CEO Lisa Su unveiled the Instinct MI450 accelerator with 432GB of HBM4, the EPYC Venice CPU on TSMC's 2nm process, and the Helios rack system. OpenAI has committed 6 gigawatts of AMD GPU capacity, with Meta signing a matching 6-gigawatt deal — the most serious challenge to Nvidia's AI dominance yet.

AMD unveils its Nvidia killer: MI450 superchip gets OpenAI's 6-gigawatt backing

Nvidia has offered its clearest look yet at Vera Rubin, the AI platform it hopes will power the next generation of artificial intelligence. During a technical briefing at its headquarters in Santa Clara, California, the company revealed fresh performance figures for the new chip system ahead of AMD's annual AI event. Nvidia says the Vera Rubin NVL72 platform can process 10 times more AI tokens per watt than its current Grace Blackwell system, while delivering significantly higher memory bandwidth and easier deployment.The announcement highlights a major shift in Nvidia's strategy. The company no longer wants to be seen only as the world's leading GPU maker it also wants to become a supplier of complete AI computing systems.<h2>Nvidia is betting on CPUs too</h2>Graphics Processing Units (GPUs) remain the backbone of AI training, but modern AI agents also rely heavily on Central Processing Units (CPUs) to manage data, networking and software operations.Vera Rubin reflects that change.Each NVL72 rack combines 72 Rubin GPUs with 36 Vera CPUs, creating an integrated platform designed for large AI workloads. Nvidia is also planning to sell the Vera CPU separately, expanding its push into a market traditionally dominated by AMD and Intel."We're on a roadmap to crank out new architectures not just GPUs but CPUs," Nvidia Vice President Ian Buck said during the briefing.<h2>Faster, cooler and easier to install</h2>Nvidia says Vera Rubin introduces several practical improvements for data centres.The company has redesigned the platform to use 100 per cent liquid cooling, reducing energy needed for cooling. It has also dramatically reduced cabling, allowing server racks to be installed or replaced in minutes instead of hours.Another key improvement is memory performance. Nvidia claims Vera Rubin offers nearly three times the memory bandwidth of Grace Blackwell, an important advantage as AI models continue to grow in size. The company also revealed that OpenAI is already testing a Vera Rubin rack as an early customer.<h2>A crucial launch in the AI chip race</h2>Vera Rubin arrives at a critical moment for Nvidia. The company is competing aggressively with AMD, which is expected to showcase its Helios AI platform, while cloud providers including Microsoft, Oracle, Meta and Amazon continue investing billions of dollars in AI infrastructure.Nvidia also faces pressure to execute flawlessly after earlier reports of overheating issues affecting some Blackwell server configurations. According to Nvidia, Vera Rubin remains on schedule for full production in the second half of this year. As AI models become larger and more capable, the competition is no longer just about building the fastest GPU. Companies now need complete AI systems that combine processing power, networking, memory efficiency and energy savings and Nvidia is betting Vera Rubin will keep it ahead in that race.

Nvidia has unveiled new performance details for its Vera Rubin AI platform, claiming up to 10 times better token-per-watt efficiency than Grace Blackwell. The system combines CPUs and GPUs to power advanced AI workloads as competition with AMD intensifies.

Nvidia has offered its clearest look yet at Vera Rubin, the AI platform it hopes will power the next generation of artificial intelligence. During a technical briefing at its headquarters in Santa Clara, California, the company revealed fresh performance figures for the new chip system ahead of AMD's annual AI event. Nvidia says the Vera Rubin NVL72 platform can process 10 times more AI tokens per watt than its current Grace Blackwell system, while delivering significantly higher memory bandwidth and easier deployment. The announcement highlights a major shift in Nvidia's strategy. The company no longer wants to be seen only as the world's leading GPU maker it also wants to become a supplier of complete AI computing systems. Nvidia is betting on CPUs too Graphics Processing Units (GPUs) remain the backbone of AI training, but modern AI agents also rely heavily on Central Processing Units (CPUs) to manage data, networking and software operations. Vera Rubin reflects that change. Each NVL72 rack combines 72 Rubin GPUs with 36 Vera CPUs, creating an integrated platform designed for large AI workloads. Nvidia is also planning to sell the Vera CPU separately, expanding its push into a market traditionally dominated by AMD and Intel. "We're on a roadmap to crank out new architectures not just GPUs but CPUs," Nvidia Vice President Ian Buck said during the briefing. Faster, cooler and easier to install Nvidia says Vera Rubin introduces several practical improvements for data centres. The company has redesigned the platform to use 100 per cent liquid cooling, reducing energy needed for cooling. It has also dramatically reduced cabling, allowing server racks to be installed or replaced in minutes instead of hours. Another key improvement is memory performance. Nvidia claims Vera Rubin offers nearly three times the memory bandwidth of Grace Blackwell, an important advantage as AI models continue to grow in size. The company also revealed that OpenAI is already testing a Vera Rubin rack as an early customer. A crucial launch in the AI chip race Vera Rubin arrives at a critical moment for Nvidia. The company is competing aggressively with AMD, which is expected to showcase its Helios AI platform, while cloud providers including Microsoft, Oracle, Meta and Amazon continue investing billions of dollars in AI infrastructure. Nvidia also faces pressure to execute flawlessly after earlier reports of overheating issues affecting some Blackwell server configurations. According to Nvidia, Vera Rubin remains on schedule for full production in the second half of this year. As AI models become larger and more capable, the competition is no longer just about building the fastest GPU. Companies now need complete AI systems that combine processing power, networking, memory efficiency and energy savings and Nvidia is betting Vera Rubin will keep it ahead in that race.

Nvidia has unveiled new performance details for its Vera Rubin AI platform, claiming up to 10 times better token-per-watt efficiency than Grace Blackwell. The system combines CPUs and GPUs to power advanced AI workloads as competition with AMD intensifies.

Nvidia says its next AI superchip is 10 times more efficient than Blackwell

Nvidia on Monday (Jun 1) unveiled a powerful laptop chip for Windows laptops, entering the market for AI-powered PC that is dominated by established players such as Intel, AMD and Qualcomm. The move marks Nvidia’s most significant push into personal computing in more than a decade and comes as the company seeks to extend its dominance beyond data centres and into devices.According to analysts, Nvidia’s entry into the personal computer processor market puts it in direct competition with industry heavyweights such as Apple, Intel and AMD. However, they expect the AI-focused devices to launch at premium price points. Although the company also plans to introduce more affordable versions of the technology in the future.The move also reflects Nvidia's broader strategy to expand beyond its dominant data centre business and strengthen its presence in the consumer technology market. The company, which has emerged as the world’s most valuable firm amid the artificial intelligence boom, continues to benefit from surging demand for its AI chips from major global technology companies.Speaking at the Computex technology exhibition, Nvidia CEO Jensen Huang described the new RTX Spark Superchip as a transformative step for personal computing.“Microsoft and Nvidia are going to reinvent the PC. This is going to be the new PC,” Huang said during the launch event.Highlighting the system’s capabilities, Huang said the platform would be powerful enough to handle a wide range of demanding workloads, from digital biology and seismic analysis to astrophysics research.“If you want to run digital biology, no problem. If you want to do seismic processing, no problem. You want astrophysics, no problem,” Huang said.He added that years of collaboration between Microsoft and Nvidia had resulted in a platform capable of running virtually all existing software while also supporting advanced AI agents and next-generation artificial intelligence applications.“Microsoft and Nvidia meticulously optimised everything so that this computer literally runs everything the world has ever created, while also enabling powerful AI agents,” Huang said, calling it “an incredible computer.”

Nvidia unveils AI-powered laptop chip for Windows PCs, challenging Intel, AMD and Qualcomm, as CEO Jensen Huang calls it the “new PC” revolution.

Nvidia on Monday (Jun 1) unveiled a powerful laptop chip for Windows laptops, entering the market for AI-powered PC that is dominated by established players such as Intel, AMD and Qualcomm. The move marks Nvidia’s most significant push into personal computing in more than a decade and comes as the company seeks to extend its dominance beyond data centres and into devices. According to analysts, Nvidia’s entry into the personal computer processor market puts it in direct competition with industry heavyweights such as Apple, Intel and AMD. However, they expect the AI-focused devices to launch at premium price points. Although the company also plans to introduce more affordable versions of the technology in the future. The move also reflects Nvidia's broader strategy to expand beyond its dominant data centre business and strengthen its presence in the consumer technology market. The company, which has emerged as the world’s most valuable firm amid the artificial intelligence boom, continues to benefit from surging demand for its AI chips from major global technology companies. Speaking at the Computex technology exhibition, Nvidia CEO Jensen Huang described the new RTX Spark Superchip as a transformative step for personal computing. “Microsoft and Nvidia are going to reinvent the PC. This is going to be the new PC,” Huang said during the launch event. Highlighting the system’s capabilities, Huang said the platform would be powerful enough to handle a wide range of demanding workloads, from digital biology and seismic analysis to astrophysics research. “If you want to run digital biology, no problem. If you want to do seismic processing, no problem. You want astrophysics, no problem,” Huang said. He added that years of collaboration between Microsoft and Nvidia had resulted in a platform capable of running virtually all existing software while also supporting advanced AI agents and next-generation artificial intelligence applications. “Microsoft and Nvidia meticulously optimised everything so that this computer literally runs everything the world has ever created, while also enabling powerful AI agents,” Huang said, calling it “an incredible computer.”

Nvidia unveils AI-powered laptop chip for Windows PCs, challenging Intel, AMD and Qualcomm, as CEO Jensen Huang calls it the “new PC” revolution.

‘Reinventing PC’: Nvidia unveils new chip for Windows laptops, challenging Intel, AMD

<o:p>Advanced Micro Devices, Inc. (AMD) stated on November 13, that it will lay off 4 per cent of its global staff as the established computer chipmaker focuses on gaining a stronger foothold in the rapidly growing artificial intelligence chip space dominated by Nvidia, according to a detailed report by CNBC.</o:p>

″As a part of aligning our resources with our largest growth opportunities, we are taking a number of targeted steps that will unfortunately result in reducing our global workforce by approximately 4 per cent,” an AMD representative said in a statement. “We are committed to treating impacted employees with respect and helping them through this transition.”<o:p></o:p>

AMD has 26,000 employees on its rolls<o:p></o:p>

AMD had 26,000 employees at the end of last year, according to a US Securities and Exchange Commission filing.<o:p></o:p>

AMD currently is the second-biggest producer of graphics processing units, or GPUs, behind Nvidia. The company has said AI represents one of its largest growth opportunities.

AMD stock is down 5 per cent in 2024 while Nvidia shares have rallied by 200 per cent, making it the most valuable publicly traded company in the world. Nvidia currently boasts a market capitalization of more than $3 trillion, whereas AMD has a market capitalization of $233 billion.<o:p></o:p>

Main objective of the company<o:p></o:p>

AMD produces powerful artificial intelligence (AI) accelerators for data centers, including the MI300X, which companies such as Meta and Microsoft purchase as an alternative to Nvidia-based systems.<o:p></o:p>

Still, Nvidia dominates the market for powerful AI chips, with over 80 per cent market share, partially because it developed the core software that AI engineers use to develop programs such as OpenAI’s ChatGPT, the CNBC report added further.<o:p></o:p>

In October AMD stated that it expects $5 billion in AI chip sales this year, about a fifth of the $25.7 billion in total sales FactSet projects for AMD’s 2024.

The company further anticipates that the total market for AI chips will be $500 billion by 2028, but its total sales are currently dwarfed by Nvidia, which FactSet expects to post $125.9 billion in revenue for calendar year 2024. The gap between Nvidia and AMD is startling, with AMD needing to do a lot of catch up. <o:p></o:p>

Further, GPUs were originally developed for gaming, which is lagging at AMD. AMD’s gaming segment is expected to decline 59 per cent in 2024 to $2.57 billion in revenue, according to FactSet.<o:p></o:p>

AMD also assembles processor chips for laptops, desktops and servers. Intel is its main competition. Its share of server CPU sales rose nearly 3 per cent on an annual basis in the third quarter to 34 per cent, according to Mercury Research.<o:p></o:p>

Market participants and global investors will closely follow these developments in the chip industry. It will guide them in taking informed investment calls going ahead. <o:p></o:p>

<o:p>&nbsp;</o:p>

Advanced Micro Devices, Inc. (AMD) stated on November 13, that it will lay off 4 per cent of its global staff as the established computer chipmaker focuses on gaining a stronger foothold in the rapidly growing artificial intelligence chip space dominated by Nvidia, according to a detailed report by CNBC.

Advanced Micro Devices, Inc. (AMD) stated on November 13, that it will lay off 4 per cent of its global staff as the established computer chipmaker focuses on gaining a stronger foothold in the rapidly growing artificial intelligence chip space dominated by Nvidia, according to a detailed report by CNBC. ″As a part of aligning our resources with our largest growth opportunities, we are taking a number of targeted steps that will unfortunately result in reducing our global workforce by approximately 4 per cent,” an AMD representative said in a statement. “We are committed to treating impacted employees with respect and helping them through this transition.” AMD has 26,000 employees on its rolls AMD had 26,000 employees at the end of last year, according to a US Securities and Exchange Commission filing. AMD currently is the second-biggest producer of graphics processing units, or GPUs, behind Nvidia. The company has said AI represents one of its largest growth opportunities. AMD stock is down 5 per cent in 2024 while Nvidia shares have rallied by 200 per cent, making it the most valuable publicly traded company in the world. Nvidia currently boasts a market capitalization of more than $3 trillion, whereas AMD has a market capitalization of $233 billion. Main objective of the company AMD produces powerful artificial intelligence (AI) accelerators for data centers, including the MI300X, which companies such as Meta and Microsoft purchase as an alternative to Nvidia-based systems. Still, Nvidia dominates the market for powerful AI chips, with over 80 per cent market share, partially because it developed the core software that AI engineers use to develop programs such as OpenAI’s ChatGPT, the CNBC report added further. In October AMD stated that it expects $5 billion in AI chip sales this year, about a fifth of the $25.7 billion in total sales FactSet projects for AMD’s 2024. The company further anticipates that the total market for AI chips will be $500 billion by 2028, but its total sales are currently dwarfed by Nvidia, which FactSet expects to post $125.9 billion in revenue for calendar year 2024. The gap between Nvidia and AMD is startling, with AMD needing to do a lot of catch up. Further, GPUs were originally developed for gaming, which is lagging at AMD. AMD’s gaming segment is expected to decline 59 per cent in 2024 to $2.57 billion in revenue, according to FactSet. AMD also assembles processor chips for laptops, desktops and servers. Intel is its main competition. Its share of server CPU sales rose nearly 3 per cent on an annual basis in the third quarter to 34 per cent, according to Mercury Research. Market participants and global investors will closely follow these developments in the chip industry. It will guide them in taking informed investment calls going ahead.

AMD to cut 4% of workforce, affecting approximately 1,000 jobs

Advanced Micro Devices (AMD) has made a significant stride in the artificial intelligence (AI) sector by unveiling its new Instinct MI325X chip during Computex 2024 in Taipei. This launch positions AMD directly against Nvidia, a leader in the data centre graphics processing unit (GPU) market, as the demand for advanced AI technologies continues to escalate as detailed in a report by CNBC.

The CNBC report further stated that AMD’s chairperson and CEO, Lisa Su, highlighted the growing need for powerful AI solutions, stating, "Demand for AI has continued to escalate and has surpassed expectations. It is evident that investment rates are on the rise across the board." The MI325X is expected to commence production by the end of 2024, aiming to provide developers and cloud service providers with a competitive alternative to Nvidia’s GPUs.

The surge in generative AI technologies, such as OpenAI's ChatGPT, has created an urgent demand for robust data centres capable of handling extensive processing requirements. Historically, Nvidia has dominated this sector, capturing over 90 per cent of the data centre AI chip market. However, AMD is determined to increase its market share in what it estimates will become a $500 billion industry by 2028.

AMD's strategy includes expediting its product release timeline, with plans to launch new chips annually. The MI325X follows the MI300X, which began shipping late last year. Furthermore, AMD has announced upcoming chips designated as MI350 for 2025 and MI400 for 2026. This aggressive approach aims to enhance AMD's competitiveness against Nvidia’s forthcoming Blackwell chips, which are set to begin shipping in significant quantities early next year.

While no new major clients were announced at the event, AMD previously disclosed partnerships with companies like Meta and Microsoft that utilise its AI GPUs. The pricing details for the MI325X remain undisclosed but are expected to be competitive as AMD seeks to disrupt Nvidia’s pricing strategy.

One of the challenges facing AMD is Nvidia's proprietary programming language, CUDA, which has become a standard among AI developers. To counter this obstacle, AMD is enhancing its ROCm software platform to facilitate smoother transitions for developers switching from Nvidia’s ecosystem. Su noted that AMD’s AI accelerators are particularly advantageous for scenarios involving content generation or predictive modelling.

The MI325X boasts up to 40 per cent greater inference performance compared to Nvidia's H200 Llama3 model, making it an appealing option for developers focused on training and deploying sophisticated AI models. “The MI325 platform provides up to 40 per cent greater inference performance compared to H200 Llama3,” Su stated

Despite the focus on AI chips, AMD remains committed to its core business of central processors (CPUs), which are essential for server operations globally. In the June quarter of this year, AMD reported that its data centre sales more than doubled from the previous year, reaching $2 billion, with AI chips contributing approximately $1 billion.

AMD also announced a new series of CPUs known as EPYC 5th Gen during Computex 2024. These CPUs come in various configurations designed to support data processing in AI workloads effectively. With prices ranging from $527 for an economical 8-core model to $14,813 for high-performance 192-core processors aimed at supercomputers, these new offerings reflect AMD’s ambition to reshape its position in the market.

As AMD continues to innovate and expand its product line, it aims not only to capture a larger share of the lucrative data centre market but also to establish itself as a formidable competitor in the rapidly evolving landscape of artificial intelligence technology.

Advanced Micro Devices (AMD) has made a significant stride in the artificial intelligence (AI) sector by unveiling its new Instinct MI325X chip during Computex 2024 in Taipei.

Advanced Micro Devices (AMD) has made a significant stride in the artificial intelligence (AI) sector by unveiling its new Instinct MI325X chip during Computex 2024 in Taipei. This launch positions AMD directly against Nvidia, a leader in the data centre graphics processing unit (GPU) market, as the demand for advanced AI technologies continues to escalate as detailed in a report by CNBC. The CNBC report further stated that AMD’s chairperson and CEO, Lisa Su, highlighted the growing need for powerful AI solutions, stating, "Demand for AI has continued to escalate and has surpassed expectations. It is evident that investment rates are on the rise across the board." The MI325X is expected to commence production by the end of 2024, aiming to provide developers and cloud service providers with a competitive alternative to Nvidia’s GPUs. The surge in generative AI technologies, such as OpenAI's ChatGPT, has created an urgent demand for robust data centres capable of handling extensive processing requirements. Historically, Nvidia has dominated this sector, capturing over 90 per cent of the data centre AI chip market. However, AMD is determined to increase its market share in what it estimates will become a $500 billion industry by 2028. AMD's strategy includes expediting its product release timeline, with plans to launch new chips annually. The MI325X follows the MI300X, which began shipping late last year. Furthermore, AMD has announced upcoming chips designated as MI350 for 2025 and MI400 for 2026. This aggressive approach aims to enhance AMD's competitiveness against Nvidia’s forthcoming Blackwell chips, which are set to begin shipping in significant quantities early next year. While no new major clients were announced at the event, AMD previously disclosed partnerships with companies like Meta and Microsoft that utilise its AI GPUs. The pricing details for the MI325X remain undisclosed but are expected to be competitive as AMD seeks to disrupt Nvidia’s pricing strategy. One of the challenges facing AMD is Nvidia's proprietary programming language, CUDA, which has become a standard among AI developers. To counter this obstacle, AMD is enhancing its ROCm software platform to facilitate smoother transitions for developers switching from Nvidia’s ecosystem. Su noted that AMD’s AI accelerators are particularly advantageous for scenarios involving content generation or predictive modelling. The MI325X boasts up to 40 per cent greater inference performance compared to Nvidia's H200 Llama3 model, making it an appealing option for developers focused on training and deploying sophisticated AI models. “The MI325 platform provides up to 40 per cent greater inference performance compared to H200 Llama3,” Su stated Despite the focus on AI chips, AMD remains committed to its core business of central processors (CPUs), which are essential for server operations globally. In the June quarter of this year, AMD reported that its data centre sales more than doubled from the previous year, reaching $2 billion, with AI chips contributing approximately $1 billion. AMD also announced a new series of CPUs known as EPYC 5th Gen during Computex 2024. These CPUs come in various configurations designed to support data processing in AI workloads effectively. With prices ranging from $527 for an economical 8-core model to $14,813 for high-performance 192-core processors aimed at supercomputers, these new offerings reflect AMD’s ambition to reshape its position in the market. As AMD continues to innovate and expand its product line, it aims not only to capture a larger share of the lucrative data centre market but also to establish itself as a formidable competitor in the rapidly evolving landscape of artificial intelligence technology.

AMD launches new AI chip to challenge Nvidia's dominance in the data centre market

Advanced Micro Devices on Wednesday said it will acquire Finnish artificial intelligence startup Silo AI for about $665 million in cash in an increasingly competitive landscape of AI chips. The transaction is part of a bid to improve AMD's AI chip capabilities to better compete with arch-rival Nvidia Corporation.

Training and developing large language models is a complex task, even for the largest tech companies. The Silo AI acquisition will let AMD further develop and deploy AMD-powered AI models and help potential customers build complex AI models with the company's chips, AMD said.

The acquisition is likely to beef up AMD's software development efforts as well. While the transaction will not have any immediate impact on AMD's financials, it "unlocks a significant amount of business moving forward," AMD Senior Vice President of AI, Vamsi Boppana said in an interview. However, AMD did not give any concrete estimates for the business that this acquisition would generate.

Silo AI is a Helsinki, Finland-based startup offering end-to-end AI-driven solutions to customers by the integration of AI technology into their products and services. Working across Europe and North America, this company has operated with some of the most recognisable brands, such as Philips, Rolls-Royce, and Unilever.

Peter Sarlin, CEO and co-founder of Silo AI, will still be at the helm to lead the unit as part of the AMD Artificial Intelligence Group, AMD said. The deal is expected to close in the second half of 2024.

This acquisition is the latest in a series of strategic moves aimed at furthering AMD in the AI space. AMD also purchased AI software firms Mipsology and Nod.ai last year, and it has invested over $125 million in a dozen AI companies over the past 12 months.

Advanced Micro Devices on Wednesday said it will acquire Finnish artificial intelligence startup Silo AI for about $665 million in cash in an increasingly competitive landscape of AI chips.

Advanced Micro Devices on Wednesday said it will acquire Finnish artificial intelligence startup Silo AI for about $665 million in cash in an increasingly competitive landscape of AI chips. The transaction is part of a bid to improve AMD's AI chip capabilities to better compete with arch-rival Nvidia Corporation. Training and developing large language models is a complex task, even for the largest tech companies. The Silo AI acquisition will let AMD further develop and deploy AMD-powered AI models and help potential customers build complex AI models with the company's chips, AMD said. The acquisition is likely to beef up AMD's software development efforts as well. While the transaction will not have any immediate impact on AMD's financials, it "unlocks a significant amount of business moving forward," AMD Senior Vice President of AI, Vamsi Boppana said in an interview. However, AMD did not give any concrete estimates for the business that this acquisition would generate. Silo AI is a Helsinki, Finland-based startup offering end-to-end AI-driven solutions to customers by the integration of AI technology into their products and services. Working across Europe and North America, this company has operated with some of the most recognisable brands, such as Philips, Rolls-Royce, and Unilever. Peter Sarlin, CEO and co-founder of Silo AI, will still be at the helm to lead the unit as part of the AMD Artificial Intelligence Group, AMD said. The deal is expected to close in the second half of 2024. This acquisition is the latest in a series of strategic moves aimed at furthering AMD in the AI space. AMD also purchased AI software firms Mipsology and Nod.ai last year, and it has invested over $125 million in a dozen AI companies over the past 12 months.

Can AMD outsmart Nvidia with $665 Million Silo AI deal?

Microsoft announced on Thursday that it will offer its cloud computing customers access to AMD's advanced artificial intelligence (AI) chips, presenting a strong competitor to Nvidia's market-leading processors. <o:p></o:p>

Details of this initiative will be shared at the upcoming Build developer conference next week.<o:p></o:p>

Through its Azure cloud computing service, Microsoft will provide clusters of AMD's flagship MI300X AI chips. <o:p></o:p>

These chips are set to rival Nvidia's H100 graphics processing units (GPUs), which are currently in high demand and dominate the data centre AI chip market. <o:p></o:p>

The MI300X chips are designed to train and run large AI models, offering customers a robust alternative to Nvidia's GPUs.<o:p></o:p>

In addition to the AMD offering, Microsoft will introduce a preview of its new Cobalt 100 custom processors at the Build conference. <o:p></o:p>

These processors are reported to deliver 40 per cent better performance compared to other processors based on Arm Holdings' technology. <o:p></o:p>

Snowflake and other companies have already begun using these Cobalt processors.<o:p></o:p>

The move to integrate AMD's MI300X chips into Azure is significant as it addresses the challenge of obtaining Nvidia's high-demand H100 GPUs. <o:p></o:p>

To build and run complex AI models, companies often need to cluster multiple GPUs together, as the required data and computations exceed the capacity of a single processor. <o:p></o:p>

AMD projects $4 billion in revenue from its AI chips this year, highlighting the growing demand and capability of these processors.<o:p></o:p>

Furthermore, Microsoft's Azure cloud unit also sells access to its own in-house AI chips, named Maia, which adds to the variety of options available for customers seeking AI solutions. <o:p></o:p>

The introduction of AMD's MI300X chips and the Cobalt 100 processors demonstrates Microsoft's strategy to diversify its AI hardware offerings and enhance its competitive edge in the cloud computing market.<o:p></o:p>

The Cobalt 100 processors, which were initially announced in November, are currently being tested to power Microsoft Teams, the company's business messaging tool. <o:p></o:p>

These processors are positioned to compete with Amazon's in-house Graviton CPUs, further intensifying the competition in the cloud computing space.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Microsoft announced on Thursday that it will offer its cloud computing customers access to AMD's advanced artificial intelligence (AI) chips, presenting a strong competitor to Nvidia's market-leading processors.

Microsoft announced on Thursday that it will offer its cloud computing customers access to AMD's advanced artificial intelligence (AI) chips, presenting a strong competitor to Nvidia's market-leading processors. Details of this initiative will be shared at the upcoming Build developer conference next week. Through its Azure cloud computing service, Microsoft will provide clusters of AMD's flagship MI300X AI chips. These chips are set to rival Nvidia's H100 graphics processing units (GPUs), which are currently in high demand and dominate the data centre AI chip market. The MI300X chips are designed to train and run large AI models, offering customers a robust alternative to Nvidia's GPUs. In addition to the AMD offering, Microsoft will introduce a preview of its new Cobalt 100 custom processors at the Build conference. These processors are reported to deliver 40 per cent better performance compared to other processors based on Arm Holdings' technology. Snowflake and other companies have already begun using these Cobalt processors. The move to integrate AMD's MI300X chips into Azure is significant as it addresses the challenge of obtaining Nvidia's high-demand H100 GPUs. To build and run complex AI models, companies often need to cluster multiple GPUs together, as the required data and computations exceed the capacity of a single processor. AMD projects $4 billion in revenue from its AI chips this year, highlighting the growing demand and capability of these processors. Furthermore, Microsoft's Azure cloud unit also sells access to its own in-house AI chips, named Maia, which adds to the variety of options available for customers seeking AI solutions. The introduction of AMD's MI300X chips and the Cobalt 100 processors demonstrates Microsoft's strategy to diversify its AI hardware offerings and enhance its competitive edge in the cloud computing market. The Cobalt 100 processors, which were initially announced in November, are currently being tested to power Microsoft Teams, the company's business messaging tool. These processors are positioned to compete with Amazon's in-house Graviton CPUs, further intensifying the competition in the cloud computing space. (With inputs from Reuters)

Microsoft unveils AMD-powered AI chips to challenge Nvidia’s position

Advanced Micro Devices (AMD) announced its projection for AI chip sales in 2024 on Tuesday, but the figures failed to meet investor expectations, resulting in a sharp decline of approximately 7 per cent in the company's stock during extended trading.<o:p></o:p>

AMD's Chief Executive Officer, Lisa Su, disclosed that the company expects AI chip sales to reach $4 billion for the year 2024, marking a $500 million increase from the previous estimate. <o:p></o:p>

Despite this upward revision, the forecast fell short of the ambitious projections set by Wall Street analysts, particularly when compared to the strong AI chip sales reported by competitor Nvidia.<o:p></o:p>

According to Ben Bajarin, CEO of Creative Strategies, investors were anticipating a stronger demand outlook for AI-related products from AMD. <o:p></o:p>

However, the slower pace of adoption compared to Nvidia may have contributed to the disappointment among investors. <o:p></o:p>

AMD faces challenges in catching up to Nvidia's position in the expanding market for artificial intelligence server semiconductors.<o:p></o:p>

The surge in demand for AI-driven technologies has led to a shift in spending priorities among enterprises, favouring AI server chips over traditional server semiconductors. <o:p></o:p>

This trend has impacted AMD's revenue, as its processors are less suited to handle the complex tasks associated with AI compared to specialised AI chips.<o:p></o:p>

Despite acknowledging the overall strong demand for AI technologies, Lisa Su noted that AMD's current ratio of AI processors to central processors (CPUs) is skewed towards the former. <o:p></o:p>

While AMD's data centre business witnessed substantial revenue growth, driven by its MI300 series of AI processors, it still trails behind Nvidia, which commands approximately 80 per cent of the AI server semiconductor market.<o:p></o:p>

In addition to the AI chip forecast, AMD provided insights into its gaming segment, which saw a decline in revenue. <o:p></o:p>

Revenue from gaming fell by 48 per cent, attributed to softening demand in the gaming market and the natural decline in revenue from gaming consoles such as Microsoft's Xbox and Sony's PlayStation 5. <o:p></o:p>

The decline in gaming revenue has further complicated the challenges faced by AMD.<o:p></o:p>

Looking ahead, AMD offered a revenue forecast of approximately $5.70 billion for the second quarter of the fiscal year, in line with analysts' estimates. <o:p></o:p>

Despite reporting revenue of $5.47 billion for the first quarter, slightly surpassing analysts' expectations, AMD's stock faced downward pressure due to concerns over its AI chip revenue outlook and challenges in the gaming market.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Advanced Micro Devices (AMD) announced its projection for AI chip sales in 2024 on Tuesday, but the figures failed to meet investor expectations, resulting in a sharp decline of approximately 7 per cent in the company's stock during extended trading.

Advanced Micro Devices (AMD) announced its projection for AI chip sales in 2024 on Tuesday, but the figures failed to meet investor expectations, resulting in a sharp decline of approximately 7 per cent in the company's stock during extended trading. AMD's Chief Executive Officer, Lisa Su, disclosed that the company expects AI chip sales to reach $4 billion for the year 2024, marking a $500 million increase from the previous estimate. Despite this upward revision, the forecast fell short of the ambitious projections set by Wall Street analysts, particularly when compared to the strong AI chip sales reported by competitor Nvidia. According to Ben Bajarin, CEO of Creative Strategies, investors were anticipating a stronger demand outlook for AI-related products from AMD. However, the slower pace of adoption compared to Nvidia may have contributed to the disappointment among investors. AMD faces challenges in catching up to Nvidia's position in the expanding market for artificial intelligence server semiconductors. The surge in demand for AI-driven technologies has led to a shift in spending priorities among enterprises, favouring AI server chips over traditional server semiconductors. This trend has impacted AMD's revenue, as its processors are less suited to handle the complex tasks associated with AI compared to specialised AI chips. Despite acknowledging the overall strong demand for AI technologies, Lisa Su noted that AMD's current ratio of AI processors to central processors (CPUs) is skewed towards the former. While AMD's data centre business witnessed substantial revenue growth, driven by its MI300 series of AI processors, it still trails behind Nvidia, which commands approximately 80 per cent of the AI server semiconductor market. In addition to the AI chip forecast, AMD provided insights into its gaming segment, which saw a decline in revenue. Revenue from gaming fell by 48 per cent, attributed to softening demand in the gaming market and the natural decline in revenue from gaming consoles such as Microsoft's Xbox and Sony's PlayStation 5. The decline in gaming revenue has further complicated the challenges faced by AMD. Looking ahead, AMD offered a revenue forecast of approximately $5.70 billion for the second quarter of the fiscal year, in line with analysts' estimates. Despite reporting revenue of $5.47 billion for the first quarter, slightly surpassing analysts' expectations, AMD's stock faced downward pressure due to concerns over its AI chip revenue outlook and challenges in the gaming market. (With inputs from Reuters)

AMD's AI chip revenue forecast miss disappoints investors, shares fall 7 pc

Advanced Micro Devices has encountered a challenge in its efforts to offer an artificial intelligence chip specifically designed for the Chinese market,&nbsp;Bloomberg News reported.

The move comes amidst Washington's intensified scrutiny and crackdown on the export of advanced technologies to China.

According to sources familiar with the matter, AMD sought approval from the US Commerce Department to sell the AI processor to China, which was specifically designed to comply with US export restrictions.

However, the chip's performance, albeit lower compared to versions sold outside of China, has been deemed by US officials as still too powerful.

Consequently, the company has been instructed to obtain a license from the Commerce Department's Bureau of Industry and Security to proceed with the sale in China.

The AI chip developed by AMD, although tailored for the Chinese market and designed to meet US export regulations, has encountered regulatory hurdles due to concerns over its capabilities.

Despite efforts to ensure compliance, US officials maintain that the processor requires further scrutiny and control to prevent its potential misuse or diversion for military purposes.

Neither AMD nor the Commerce Department immediately responded to requests for comment from Reuters.

This development follows broader measures taken by the US government to curb the flow of advanced technologies to China, particularly those with potential military applications.

In October, the US announced plans to halt shipments of more advanced artificial intelligence chips, including those designed by Nvidia, as part of efforts to prevent Beijing from acquiring cutting-edge US technologies that could bolster its military capabilities.

(With inputs from agencies)

Advanced Micro Devices has encountered a challenge in its efforts to offer an artificial intelligence chip specifically designed for the Chinese market, Bloomberg News reported.

Advanced Micro Devices has encountered a challenge in its efforts to offer an artificial intelligence chip specifically designed for the Chinese market, Bloomberg News reported. The move comes amidst Washington's intensified scrutiny and crackdown on the export of advanced technologies to China. According to sources familiar with the matter, AMD sought approval from the US Commerce Department to sell the AI processor to China, which was specifically designed to comply with US export restrictions. However, the chip's performance, albeit lower compared to versions sold outside of China, has been deemed by US officials as still too powerful. Consequently, the company has been instructed to obtain a license from the Commerce Department's Bureau of Industry and Security to proceed with the sale in China. The AI chip developed by AMD, although tailored for the Chinese market and designed to meet US export regulations, has encountered regulatory hurdles due to concerns over its capabilities. Despite efforts to ensure compliance, US officials maintain that the processor requires further scrutiny and control to prevent its potential misuse or diversion for military purposes. Neither AMD nor the Commerce Department immediately responded to requests for comment from Reuters. This development follows broader measures taken by the US government to curb the flow of advanced technologies to China, particularly those with potential military applications. In October, the US announced plans to halt shipments of more advanced artificial intelligence chips, including those designed by Nvidia, as part of efforts to prevent Beijing from acquiring cutting-edge US technologies that could bolster its military capabilities. (With inputs from agencies)

AMD faces setback as US Government blocks sale of AI chip to China

Chipmaker AMD on Tuesday announced a $1.5 billion boost to its 2024 forecast for artificial intelligence (AI) processors, aiming for a total of $3.5 billion. However, this optimistic projection fell short of meeting the high expectations set by Wall Street, leaving investors wanting more. <o:p></o:p>

According to Reuters, AMD's stock, which has surged approximately 140 per cent in the past year, saw a decline of about 6 per cent in extended trading as the company also provided first-quarter revenue estimates below Wall Street's predictions.<o:p></o:p>

Investing.com analyst Jesse Cohn expressed disappointment with AMD's performance, highlighting a "notable miss on operating income and operating margins." <o:p></o:p>

Cohn emphasised the challenge the company faced amid elevated expectations, stating, "The company had little margin for error amid lofty expectations, and investors were disappointed with the forward guidance provided for the current quarter." <o:p></o:p>

AMD's CEO Lisa Su acknowledged the company's potential to surpass the projected $3.5 billion worth of AI chip sales once additional capacity comes online in the second half of the year. <o:p></o:p>

However, analysts, who had previously projected figures ranging from $4 billion to $8 billion for the AI segment, found the update fell short of their expectations, impacting the stock valuation.<o:p></o:p>

During a conference call, Lisa Su commented on the soft demand from cloud computing companies within AMD's data centre segment, which includes both traditional server chips and AI processors. <o:p></o:p>

Su noted that as companies strive to develop their own generative AI applications, enterprise budgets are directed towards processors used in AI servers. <o:p></o:p>

With Nvidia holding a dominant 80 per cent market share, AMD's position as a viable alternative in the market is crucial. <o:p></o:p>

Despite the overall growth of AMD's data centre segment by 38 per cent to $2.3 billion, the company faces challenges in the evolving landscape of AI and cloud computing.<o:p></o:p>

AMD's struggles extend beyond the AI segment, with weaknesses evident in the programmable chip market, which has seen a downturn due to a chip supply glut impacting industries like automotive and industrial. <o:p></o:p>

The fourth-quarter embedded segment revenue for AMD fell roughly 24 per cent to $1.1 billion. Additionally, the gaming segment experienced a 17 per cent contraction to $1.4 billion, influenced by reaching peak revenue from chip designs for gaming consoles like Microsoft's Xbox and Sony's PlayStation 5. <o:p></o:p>

While AMD anticipates growth in the PC market with built-in AI capabilities, scepticism remains among investors and analysts regarding the company's ability to meet the expectations set by its competitors.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Chipmaker AMD on Tuesday announced a $1.5 billion boost to its 2024 forecast for artificial intelligence (AI) processors, aiming for a total of $3.5 billion. However, this optimistic projection fell short of meeting the high expectations set by Wall Street, leaving investors wanting more.

Chipmaker AMD on Tuesday announced a $1.5 billion boost to its 2024 forecast for artificial intelligence (AI) processors, aiming for a total of $3.5 billion. However, this optimistic projection fell short of meeting the high expectations set by Wall Street, leaving investors wanting more. According to Reuters, AMD's stock, which has surged approximately 140 per cent in the past year, saw a decline of about 6 per cent in extended trading as the company also provided first-quarter revenue estimates below Wall Street's predictions. Investing.com analyst Jesse Cohn expressed disappointment with AMD's performance, highlighting a "notable miss on operating income and operating margins." Cohn emphasised the challenge the company faced amid elevated expectations, stating, "The company had little margin for error amid lofty expectations, and investors were disappointed with the forward guidance provided for the current quarter." AMD's CEO Lisa Su acknowledged the company's potential to surpass the projected $3.5 billion worth of AI chip sales once additional capacity comes online in the second half of the year. However, analysts, who had previously projected figures ranging from $4 billion to $8 billion for the AI segment, found the update fell short of their expectations, impacting the stock valuation. During a conference call, Lisa Su commented on the soft demand from cloud computing companies within AMD's data centre segment, which includes both traditional server chips and AI processors. Su noted that as companies strive to develop their own generative AI applications, enterprise budgets are directed towards processors used in AI servers. With Nvidia holding a dominant 80 per cent market share, AMD's position as a viable alternative in the market is crucial. Despite the overall growth of AMD's data centre segment by 38 per cent to $2.3 billion, the company faces challenges in the evolving landscape of AI and cloud computing. AMD's struggles extend beyond the AI segment, with weaknesses evident in the programmable chip market, which has seen a downturn due to a chip supply glut impacting industries like automotive and industrial. The fourth-quarter embedded segment revenue for AMD fell roughly 24 per cent to $1.1 billion. Additionally, the gaming segment experienced a 17 per cent contraction to $1.4 billion, influenced by reaching peak revenue from chip designs for gaming consoles like Microsoft's Xbox and Sony's PlayStation 5. While AMD anticipates growth in the PC market with built-in AI capabilities, scepticism remains among investors and analysts regarding the company's ability to meet the expectations set by its competitors. (With inputs from Reuters)

AMD's AI Chip ambitions face Wall Street skepticism despite $1.5 bn boost in forecast

Shares of Nvidia and Advanced Micro Devices (AMD) experienced a significant surge on Tuesday as investor confidence in the growing demand for artificial intelligence (AI)-powered chips prompted Wall Street analysts to raise their price targets for these semiconductor giants. <o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

Nvidia, currently holding a dominant position in the advanced AI chip market, faces competition from AMD, which is anticipated to make strides this year, increasing deliveries of its own chips to enterprise clients, according to Barclays analysts led by Tom O'Malley.<o:p></o:p>

Barclays analysts noted in an investor note that with supply constraints, customers often resort to using the entire Nvidia platform to secure priority shipments of accelerators.<o:p></o:p>

They anticipate that 2024 will be the year when AI opens up further, with other chipmakers like AMD gaining market share.<o:p></o:p>

Nvidia's stock witnessed a 3 per cent increase, reaching $563.65 and setting a new record high. <o:p></o:p>

Simultaneously, AMD shares surged by 7.5 per cent to $157.57, reaching their highest level in over two years. <o:p></o:p>

Nvidia's shares more than tripled in value in the past year, making it the world's most valuable chipmaker, while AMD's shares more than doubled.<o:p></o:p>

Barclays raised its price target for AMD shares to $200 from $120, reflecting the positive outlook for the company. <o:p></o:p>

KeyBanc analysts also increased their price target for AMD to $195 from $170. <o:p></o:p>

Nvidia, too, received a price target hike to $740 from $650 from KeyBanc. <o:p></o:p>

Both Nvidia and AMD are currently among the top gainers in the PHLX semiconductor index, which showed a 1.15 per cent increase during the session.<o:p></o:p>

Analysts covering Nvidia's stock maintain a median price target of $625, slightly down from $627.50 a month ago. The collective recommendation for the stock is "buy." Conversely, analysts covering AMD's shares have a median price target of $145, up from $130 a month ago, with a collective recommendation to buy the stock [Reuters].<o:p></o:p>

In a strategic move, Nvidia plans to commence mass production later this year of an AI chip tailored for its Chinese customers, aligning with tightened US export rules. <o:p></o:p>

On the other hand, AMD, aiming to challenge Nvidia's flagship microprocessors, announced two new AI data centre chips in December.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Shares of Nvidia and Advanced Micro Devices (AMD) experienced a significant surge on Tuesday as investor confidence in the growing demand for artificial intelligence (AI)-powered chips prompted Wall Street analysts to raise their price targets for these semiconductor giants.

Shares of Nvidia and Advanced Micro Devices (AMD) experienced a significant surge on Tuesday as investor confidence in the growing demand for artificial intelligence (AI)-powered chips prompted Wall Street analysts to raise their price targets for these semiconductor giants. This is based on a Reuters report. Nvidia, currently holding a dominant position in the advanced AI chip market, faces competition from AMD, which is anticipated to make strides this year, increasing deliveries of its own chips to enterprise clients, according to Barclays analysts led by Tom O'Malley. Barclays analysts noted in an investor note that with supply constraints, customers often resort to using the entire Nvidia platform to secure priority shipments of accelerators. They anticipate that 2024 will be the year when AI opens up further, with other chipmakers like AMD gaining market share. Nvidia's stock witnessed a 3 per cent increase, reaching $563.65 and setting a new record high. Simultaneously, AMD shares surged by 7.5 per cent to $157.57, reaching their highest level in over two years. Nvidia's shares more than tripled in value in the past year, making it the world's most valuable chipmaker, while AMD's shares more than doubled. Barclays raised its price target for AMD shares to $200 from $120, reflecting the positive outlook for the company. KeyBanc analysts also increased their price target for AMD to $195 from $170. Nvidia, too, received a price target hike to $740 from $650 from KeyBanc. Both Nvidia and AMD are currently among the top gainers in the PHLX semiconductor index, which showed a 1.15 per cent increase during the session. Analysts covering Nvidia's stock maintain a median price target of $625, slightly down from $627.50 a month ago. The collective recommendation for the stock is "buy." Conversely, analysts covering AMD's shares have a median price target of $145, up from $130 a month ago, with a collective recommendation to buy the stock [Reuters]. In a strategic move, Nvidia plans to commence mass production later this year of an AI chip tailored for its Chinese customers, aligning with tightened US export rules. On the other hand, AMD, aiming to challenge Nvidia's flagship microprocessors, announced two new AI data centre chips in December. (With inputs from Reuters)

Nvidia and AMD shares soar as analysts boost price targets amid AI optimism

After media reports showed that the United States has expanded exports restrictions on artificial intelligence chips to West Asia, the US Department of commerce clarified that the US "has not blocked chip sales to the middle East." The clarification came after artificial intelligence chip firms Nvidia and Advanced Micro Devices (AMD) received notices about export licensing requirements to ship chips to some West Asian countries.

Clarification after chip firms receive notices on export curbs

The US has imposed a restriction on the exports of sophisticated NVIDIA and&nbsp;Advanced Micro Devices (AMD) artificial intelligence (AI) chips to some countries in West Asia (Middle East), according to a Reuters report.&nbsp;After imposing a ban on China, West Asia has become the new target spot for the Biden administration.&nbsp;&nbsp;

According to a regulatory filing by NVIDIA, its state-of-the-art A100 and H100 chips, designed to speed up&nbsp;machine-learning tasks, have been put on the 'no-export' list.

"During the second quarter of fiscal year 2024, the USG (US government) informed us of an additional licensing requirement for a subset of A100 and H100 products destined to certain customers and other regions, including some countries in the Middle East," Nvidia said in a filing dated August 28.

The report stated that AMD also received a similar letter, informing about the restrictions. However, both companies have stated that the restrictions will have no "immediate material impact" on the revenue.&nbsp;

Usually, Washington imposes export controls for national security reasons. However, it wasn't immediately clear what risks were posed by exports to West Asia.&nbsp;

<a href="https://www.wionews.com/videos/micron-fails-chinas-security-check-594972">WATCH |&nbsp;Micron fails China's security check</a>

<iframe allow="accelerometer; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" data-gtm-yt-inspected-20="true" data-gtm-yt-inspected-25="true" data-gtm-yt-inspected-32="true" frameborder="0" height="350" loading="lazy" src="https://www.wionews.com/videos/micron-fails-chinas-security-check-594972/embed?autoplay=0" title="live tv" width="100%"></iframe>

<h2>China imposes sanctions&nbsp;</h2>

Notably, last month,&nbsp;China, much to the chagrin of the US, decided to impose export controls on two rare elements&nbsp;essential for the manufacturing of semiconductors.&nbsp;

Starting earlier this month,&nbsp;exports of gallium and germanium, among several other industrial compounds have been subject to restrictions.&nbsp;China’s Ministry of Commerce and Administration of Customs took the decision, laying it out that the exporters will have to seek special approval from the State Council, China's cabinet, for the listed items.&nbsp;

<a href="https://www.wionews.com/world/the-semiconductor-wars-china-restricts-exports-of-raw-materials-critical-to-chip-production-611607" target="_blank">Also read | The semiconductor wars: China restricts exports of raw materials critical to chip production</a>

<h2>Why the restrictions?</h2>

The chip wars between the two nations began under the tenure of former president Donald Trump when his administration banned suppliers from selling chips made using US technology to tech giant Huawei without a special license.

For years, the US led the technology battle with China. However, the scales have recently tipped in Beijing's favour. According to a study presented by the Special Competitive Studies Project (SCSP), the US could lose the tech competition to China if it does not take action on the 5G, AI, and microchip core fronts.&nbsp;

The report added that the tech race would be going through its critical phase in the 2025-2030 period. During this window, Beijing might be able to edge out the USA if the current trend continues.&nbsp;

(With inputs from agencies)

WATCH WION LIVE HERE:&nbsp;

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The US has imposed a restriction on the exports of sophisticated NVIDIA and Advanced Micro Devices (AMD) artificial intelligence (AI) chips to some countries in West Asia (Middle East), according to a Reuters report.

The US has imposed a restriction on the exports of sophisticated NVIDIA and Advanced Micro Devices (AMD) artificial intelligence (AI) chips to some countries in West Asia (Middle East), according to a Reuters report. After imposing a ban on China, West Asia has become the new target spot for the Biden administration. According to a regulatory filing by NVIDIA, its state-of-the-art A100 and H100 chips, designed to speed up machine-learning tasks, have been put on the 'no-export' list. "During the second quarter of fiscal year 2024, the USG (US government) informed us of an additional licensing requirement for a subset of A100 and H100 products destined to certain customers and other regions, including some countries in the Middle East," Nvidia said in a filing dated August 28. The report stated that AMD also received a similar letter, informing about the restrictions. However, both companies have stated that the restrictions will have no "immediate material impact" on the revenue. Usually, Washington imposes export controls for national security reasons. However, it wasn't immediately clear what risks were posed by exports to West Asia. WATCH | Micron fails China's security check China imposes sanctions Notably, last month, China, much to the chagrin of the US, decided to impose export controls on two rare elements essential for the manufacturing of semiconductors. Starting earlier this month, exports of gallium and germanium, among several other industrial compounds have been subject to restrictions. China’s Ministry of Commerce and Administration of Customs took the decision, laying it out that the exporters will have to seek special approval from the State Council, China's cabinet, for the listed items. Also read | The semiconductor wars: China restricts exports of raw materials critical to chip production Why the restrictions? The chip wars between the two nations began under the tenure of former president Donald Trump when his administration banned suppliers from selling chips made using US technology to tech giant Huawei without a special license. For years, the US led the technology battle with China. However, the scales have recently tipped in Beijing's favour. According to a study presented by the Special Competitive Studies Project (SCSP), the US could lose the tech competition to China if it does not take action on the 5G, AI, and microchip core fronts. The report added that the tech race would be going through its critical phase in the 2025-2030 period. During this window, Beijing might be able to edge out the USA if the current trend continues. (With inputs from agencies) WATCH WION LIVE HERE:

After China, US curbs AI chip exports from NVIDIA and AMD to West Asian countries

US chipmaker Advanced Micro Devices (AMD) has announced that it&nbsp;will be investing $400 million in India over the next five years.

AMD’s Chief Technology Officer, Mark Papermaster, made the announcement on Friday (July 28) in the presence of Prime Minister Narendra Modi during an annual semiconductor conference in the PM’s home state Gujarat.

Other speakers at the marquee event include Foxconn Chairman Young Liu and Micron&nbsp;CEO Sanjay Mehrotra.

AMD is expected to open its new design centre campus in southern Bengaluru city—which is known as the Silicon Valley of India— by the end of this year and will serve as the company’s largest design centre.

AMD said that it would generate about 3,000 new engineering roles within five years.

"Our India teams will continue to play a pivotal role in delivering the high-performance and adaptive solutions that support AMD customers worldwide," Papermaster said.

The California-based firm has been operating in India since 2001 when it opened its first site in the capital New Delhi city.

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<h2>New campus coming up in Bengaluru</h2>

Now, the company has more than 6500 employees in India. And with this new 500,000-square-foot Bengaluru campus, AMD will increase its office footprint in 10 locations across these cities—Bangaluru, Delhi, Gurugram, Hyderabad and Mumbai.

The new AMD campus is expected to open before the end of 2023 and will feature extensive lab space, state-of-the-art collaboration tools and seating configurations designed to foster teamwork.

The investment is supported by the various policy initiatives of the Government of India focused on the semiconductor industry.

For years, India has been trying hard to improve its nascent chip-making industry. In 2021, the Narendra Modi-led government unveiled a $10 billion incentive programme for the chip sector, but the plan has hit few roadblocks as no company has managed to set a up a fabrication plant.

Unlike its top rival Intel, AMD outsources production of chips it designs to third-party manufacturers like Taiwan's TSMC, reports Reuters news agency.

TSMC and South Korea's Samsung are among the elite few chipmakers globally to have mastered cutting-edge chipmaking, a technology many nations are now vying for to avoid supply chain shocks, such as those faced during the pandemic.

WATCH WION LIVE HERE

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US chipmaker Advanced Micro Devices (AMD) has announced that it will be investing $400 million in India over the next five years. AMD’s Chief Technology Officer, Mark Papermaster, made the announcement on Friday (July 28) in the presence of Prime Minister Narendra Modi during an annual semiconductor conference in the PM’s home state Gujarat.

US chipmaker Advanced Micro Devices (AMD) has announced that it will be investing $400 million in India over the next five years. AMD’s Chief Technology Officer, Mark Papermaster, made the announcement on Friday (July 28) in the presence of Prime Minister Narendra Modi during an annual semiconductor conference in the PM’s home state Gujarat. Other speakers at the marquee event include Foxconn Chairman Young Liu and Micron CEO Sanjay Mehrotra. AMD is expected to open its new design centre campus in southern Bengaluru city—which is known as the Silicon Valley of India— by the end of this year and will serve as the company’s largest design centre. AMD said that it would generate about 3,000 new engineering roles within five years. "Our India teams will continue to play a pivotal role in delivering the high-performance and adaptive solutions that support AMD customers worldwide," Papermaster said. The California-based firm has been operating in India since 2001 when it opened its first site in the capital New Delhi city. #WATCH | Gandhinagar, Gujarat: Mark Papermaster, EVP and CTO, Advanced Micro Devices (AMD) at Semiconductor India says, "...AMD will invest $400 million in India in the next five years. AMD will enhance its R&D capabilities...We will build our largest design centre in… pic.twitter.com/Vt1bYREuYI — ANI (@ANI) July 28, 2023 × New campus coming up in Bengaluru Now, the company has more than 6500 employees in India. And with this new 500,000-square-foot Bengaluru campus, AMD will increase its office footprint in 10 locations across these cities—Bangaluru, Delhi, Gurugram, Hyderabad and Mumbai. The new AMD campus is expected to open before the end of 2023 and will feature extensive lab space, state-of-the-art collaboration tools and seating configurations designed to foster teamwork. The investment is supported by the various policy initiatives of the Government of India focused on the semiconductor industry. For years, India has been trying hard to improve its nascent chip-making industry. In 2021, the Narendra Modi-led government unveiled a $10 billion incentive programme for the chip sector, but the plan has hit few roadblocks as no company has managed to set a up a fabrication plant. Unlike its top rival Intel, AMD outsources production of chips it designs to third-party manufacturers like Taiwan's TSMC, reports Reuters news agency. TSMC and South Korea's Samsung are among the elite few chipmakers globally to have mastered cutting-edge chipmaking, a technology many nations are now vying for to avoid supply chain shocks, such as those faced during the pandemic. WATCH WION LIVE HERE

AMD announces investment of $400 million in India over next five years

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