Advanced Micro Devices Inc (NASDAQ:AMD, ETR:AMD) (AMD) unveiled a new artificial intelligence (AI) chip at an investor event on Wednesday, and tech players like Meta Platforms Inc (NASDAQ:FB), Microsoft Corporation (NASDAQ:MSFT) and OpenAI are already lining up to buy it.
The MI300X chip is equipped with 192 gigabytes of high-performance memory called HBM3, which can transfer data at greater speeds and can handle larger AI models.
The MI300X is expected to begin shipping early next year, the company said.
Crucially, AMD CEO Lisa Su said the chip will be less expensive than the graphics processors (GPUs) produced by Nvidia Corporation (NASDAQ:NVDA), which currently have a strong grip on the AI model creation and training industry and sell for $40,000 per chip.
At the AMD event, Su compared the MI300X to Nvidia’s H100 AI GPU.
“What this performance does is it just directly translates into a better user experience,” Su said. “When you ask a model something, you’d like it to come back faster, especially as responses get more complicated.”
Meta said it plans to use Instinct MI300X GPUs for AI inference workloads, such as image editing, processing and processing AI stickers, while Microsoft CTO Kevin Scott said MI300X chips will be offered on its Azure web service.
Notably, Meta and Microsoft have been two of the largest buyers of Nvidia H100 GPUs this year, according to a research report from Omidia.
OpenAI intends to use AMD chips in software called Triton, which is used in AI research.
“I think it’s clear to say that Nvidia has to be the vast majority of right now,” Su said to reporters, referencing the AI chip market. “We believe it could be $400-billion-plus in 2027. And we could get a nice piece of that.”
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