AMD Unveils New AI Chip to Compete with Nvidia’s Advanced Accelerator for GAI

In its bid to rival chipmaker Nvidia in providing the basis for a surge in AI-driven business tools, Advanced Micro Devices has unveiled a fresh artificial intelligence chip.

The semiconductor company, based in Santa Clara, California, described its new MI300X chip as “the world’s most advanced accelerator for generative artificial intelligence.” It is expected to attract interest from major cloud providers such as Amazon or Microsoft, but AMD has not specified which cloud provider might use it.

CFRA senior equity analyst Angelo Zino predicted this month that AMD’s MI300 processor “will see significant interest from cloud providers and compete with NVIDIA’s Grace Hopper Superchip.”

“AMD’s stronger partnership with Microsoft should also contribute, as it is said to be developing a custom processor chip that Microsoft will use for AI workloads,” Zino wrote.

AMD CEO Lisa Su presented the new technology at a showcase event in San Francisco on Tuesday.

AMD joins a growing number of tech companies trying to capitalize on broader interest from businesses looking for new AI tools that can analyze data, help make decisions and potentially replace some of the tasks currently performed by human workers. Most of the interest is in “generative AI tools” such as ChatGPT, which can produce written works on command, as well as images, computer code and other media.

Nvidia, also based in Santa Clara, has established itself as a leading supplier of AI chips. The term covers computer hardware specialized to handle workloads such as “training” artificial intelligence systems based on huge databases.

Nvidia, already one of the most valuable companies on the planet, joined the exclusive club of companies worth more than a trillion dollars shortly after it predicted a huge increase in revenue thanks in part to chips used with artificial intelligence technology.