Although Nvidia is the undisputed chief in AI chips, capturing over 80% of the market, AMD CEO Lisa Su says AMD’s newest chips are “outperforming” Nvidia’s with “larger effectivity.”
Su stated at an AMD launch occasion on Thursday in San Jose, California, that AMD’s new MI350 chips are as much as 35 occasions sooner than earlier generations, per Bloomberg. The MI350 chips started delivery out earlier this month.
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In terms of operating AI packages, Su claims that AMD’s MI355 chip affords “larger effectivity” in comparison with Nvidia’s B200 and GB200 chips, which have been launched in 2024. She stated that the MI355X chip “matches the efficiency of the considerably dearer and complicated [Nvidia] GB200” at a cheaper price level. Demand has pushed up the value of AI chips, which may every price tens of hundreds of {dollars}, in accordance with The New York Times. Nvidia’s chips can price up to four times more than competing AMD chips.
OpenAI CEO Sam Altman made an look on stage with Su on the occasion to say that his firm would use the most recent AMD chips.
“It’ll be an incredible factor,” Altman stated on the occasion, per CNBC.
AMD CEO Lisa Su. Photograph by Chip Somodevilla/Getty Pictures
Su stated that the MI355 chip processes 40% extra tokens, or models of textual content that AI fashions use to grasp and course of information, in comparison with chips from opponents like Nvidia.
“MI355 can ship as much as 40% extra tokens per greenback than competing options,” Su stated on the occasion.
Regardless of Su’s assertions that AMD chips are extra environment friendly than Nvidia’s, Nvidia leads the AI chip market with 85.2% of the market share in comparison with AMD’s 14.3%, in accordance with estimates shared with Bloomberg by world analysis agency IDC.
Different firms place Nvidia even additional forward. Jon Peddie Analysis, a number one evaluation agency, reported last week that Nvidia had 92% of the marketplace for AI chips within the first quarter of 2025, in comparison with 8% for AMD.
Nvidia and AMD are the business leaders in superior pc graphics chips, that are foundational to AI improvement. Nvidia CEO Jensen Huang stated in September that his largest fear was intense demand for AI expertise, as tech firms pour billions of {dollars} into investments in AI infrastructure. A few of Nvidia’s largest purchasers, together with Meta, Microsoft, Amazon, and Google, have every pledged tens of billions of dollars in direction of AI spending this 12 months.
In flip, Nvidia and AMD have additionally grown their backside line.
Nvidia achieved a file full-year income of $130.5 billion, up 114% from a 12 months in the past, for the fiscal 12 months ending Jan. 31. Analysts predict that Nvidia’s AI chip gross sales will rise to $262 billion by 2030.
AMD additionally set a brand new file in 2024, with income of $25.8 billion, up 24% year-over-year. The corporate had a market capitalization of $190 billion on the time of writing, in comparison with Nvidia’s $3.49 trillion.
