AMD (Advanced Micro Devices Inc) currently holds only 3% of the market share in data center GPUs, while NVIDIA Corporation holds 92%. With the increasing demand for AI-related products and services, there will be a significant investment in chips and data centers in the upcoming years. Although NVIDIA is a giant in the sector, there is a possibility that it may not be able to fulfill all the orders. In such a scenario, there is always an opportunity for a competitor to showcase its products and take advantage of the possible leftovers.
AMD is NVIDIA's primary competitor and has been trailing closely behind for years with the second-largest market share in GPUs. However, in 2023, AMD faced some challenges in providing its chips to the growing number of Al developers seeking high-computing power, which put it at a disadvantage compared to Nvidia. Despite this, the company introduced a new Al GPU in December that holds the potential to secure a lucrative position in the industry.
The Al GPU from AMD, known as MI300X, is expected to be a strong contender against similar offerings, attracting attention from key players in the Al field. In November 2023, Microsoft announced that Azure would be the first cloud platform to integrate AMD's new GPU, enhancing its Al capabilities. Given Microsoft's close collaboration with OpenAl, this partnership is a substantial advantage for AMD.
Although AMD may not be as advanced in its Al endeavors as Nvidia, it remains a formidable competitor. With the commencement of shipping its Al chips and expansion into other market segments like Al-powered PCs, AMD has the potential for further growth and success.
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