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AMD has announced that its advanced MI300X GPU for artificial intelligence (AI) will begin shipping to select customers in the coming months. This move by AMD presents a significant competition to Nvidia, which currently holds a dominant position in the AI chip market with more than 80% market share, as per analysts' evaluations.
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GPU chips, employed by organizations like OpenAI for developing advanced AI applications like ChatGPT, could witness a potential shift if AMD's AI accelerators gain popularity as alternatives to Nvidia's offerings. This presents a significant, unexplored market opportunity for AMD, primarily recognized for its conventional computer processors.
Why it matters
AMD's undisclosed pricing for its GPUs may exert price pressure on Nvidia's high-cost H100 GPUs. Lower GPU prices can help reduce the expenses of running generative AI applications, while the semiconductor industry finds strength in AI chips despite the slump in PC sales.
