Shulou(Shulou.com)11/24 Report--

Beijing time on the morning of June 14, it is reported that on Tuesday, local time, AMD disclosed the latest details on how to use the new artificial intelligence chip to challenge market leader Nvidia, but they left out the information that Wall Street most wants to know-who will buy this chip?

AMD said the chip will be produced in small quantities in the third quarter and mass production in the fourth quarter, with memory up to 192GB.

AMD CEO Su Zifeng said in an interview that the chip could help technology companies control soaring costs due to services such as ChatGPT. She disclosed the information in a keynote speech in San Francisco and showed how the artificial intelligence system based on the MI300X chip could write poems for San Francisco.

"the more memory you have, the more models you can handle." Su Zifeng said, "We see in the customer's workload that it runs much faster. We think it does have differentiation."

In previous speeches, AMD has disclosed the big customers of new products, but this time, they did not disclose which companies will adopt MI300X or a simplified version of MI300A. The company did not disclose in detail the price of the chips or how much they can boost revenue.

AMD's shares have doubled since the start of the year and hit a 16-month high in early trading on Tuesday. But after announcing the artificial intelligence strategy, AMD's shares closed down 3.6 per cent on the day, while Nvidia closed up 3.9 per cent at $410.22, becoming the first chipmaker with a market capitalization of more than $1,000bn.

"I think Wall Street may be disappointed because no big client said they would use MI300A or X," said Kevin Krewell, chief analyst at TIRIAS Research, a market research firm. "they want AMD to reveal some information that the company has replaced Nvidia in some designs."

Nvidia shares are up 170% so far this year. Analysts say the chip company dominates the artificial intelligence market, with a share of 80 to 95 per cent.

Nvidia has few large competitors. While Intel and startups such as Cerebras Systems and SambaNova Systems are also developing competing products, the biggest sales threat is chips developed by Google and Amazon's cloud computing division, which rent out their customized chips to outside developers.

In addition to the artificial intelligence market, AMD said it had begun shipping a general-purpose CPU called Bergamo to companies such as Meta.

Alexis Blackbojolin (Alexis Black Bjorlin), director of Meta computing infrastructure, says the company uses Bergamo chips.

But investors are still more concerned about artificial intelligence news. Nvidia has been able to dominate not only because of the chip itself, but also because it has been providing artificial intelligence researchers with software tools for more than a decade and predicting their demand for chips that will take years to design.

AMD released the latest information about Rocm software on Tuesday, and its competitor is Nvidia's Cuda software platform.

Soumith Chintala, vice president of Meta artificial intelligence open source software, said at the AMD launch that he had worked closely with AMD to allow artificial intelligence developers to use free tools to move away from the "single dominant vendor" of artificial intelligence chips and to other solutions offered by companies such as AMD.

"in fact, you don't have to do much work, and in many cases you can move from one platform to another without even doing anything." Zitara said.

But analysts say that just because technologically mature companies such as Meta can get faster speed through AMD chips, it does not mean that less technologically competent companies will also widely adopt the chip.

"even if AMD's hardware performance is comparable to that of Nvidia, people still don't believe that AMD's software solution can compete with Nvidia," said Anshel Sag, an analyst at Moor Insights & Strategy, a market research firm.

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