AMD CEO Challenges Nvidia's Dominance in AI Chip Market

AMD's CEO Believes That The AI Markets Has Room For "More Players"; NVIDIA Hasn't Achieved Monopoly Status Yet

AMD's CEO Lisa Su has refuted the claims of NVIDIA's monopoly over the AI market, claiming that there's always room for more players to step in. It won't be wrong to conclude the fact that the past few quarters have been completely dominated by NVIDIA, not just based on the financial results, but also on how Team Green has managed to increase the adoption of its AI products in the industry. The firm has bagged revenue several times larger than what its competitors were able to achieve, hence the conclusion of a "monopolized" market isn't too far off. But, AMD's CEO Lisa Su believes that there's still optimism, and in an interview to Jim Cramer (via CNBC), compute applications will require diversity in the longer run. The way to think about it is, there's no one size fits all in computing. There's no, you know, only one architecture. Actually, you're going to need the right compute for each application. - AMD's CEO Lisa Su AMD's CEO is implying that ultimately, the need for "compute specialization", especially in the AI markets will grow, and in the longer run, it will prompt the need for more diversity, hence the pivot will move away from the likes of NVIDIA. Lisa claims that AI will become a much more significant part of the lives of individuals, and they will move away that just measuring the technology based on the ROI it generates. AMD expects the AI markets to reach up to $400 billion by 2027, which shows how valuable the technology going to moving into the future. I really believe that AI will impact everyone's lives. It's just starting today. So, you know, let's not be impatient, right. Tech trends are meant to play out over years, not over months. - AMD's CEO Lisa Su In terms of what AMD brings onboard in computing capabilities, the firm lags behind the likes of NVIDIA, but Team Red is moving rapidly in leveling up its existent portfolio, and they are already working upon an "accelerated" AI roadmap, with the firm expected to release the Instinct MI325X AI accelerator in the upcoming months. Apart from this, AMD has plans to push out their MI400 lineup as well moving into 2025, so the competition is looking to be aggressive ahead.

AMD CEO talks competition with Nvidia: 'there's no one size fits all in computing'

"The way to think about it is, there's no one size fits all in computing," she said. "There's no, you know, only one architecture. Actually, you're going to need the right compute for each application." Both AMD and Nvidia design semiconductor chips essential for the new generative AI technology everyone in the enterprise is clamoring for. While the latter currently dominates the market, competition is stiff, with rivals like AMD and Intel vying for Big Tech customer with the deepest pockets. To Su, the "technology ecosystem" works well when there's competition and partnership, saying there should be areas where rivals work together and where they compete. But she said that, for the most part, customers want to be able to choose from different good options. Su also discussed the future of AI, saying the world is just beginning to recognize what AI can do. In a decade, she said, people won't be asking about what the ROI for AI is. Instead, she said, it will be a major part of life, from the business sector to education to healthcare. She also said she expects the computing market for AI accelerators -- technology that speeds up AI and machine learnings programs -- to reach $400 billion by 2027. "I really believe that AI will impact everyone's lives. It's just starting today," Su said. "So, you know, let's not be impatient, right. Tech trends are meant to play out over years, not over months."

Nvidia Rival AMD's CEO Says 'There's No One Size Fits All' As AI Chip Race Heats Up - NVIDIA (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD)

AMD AMD CEO Lisa Su emphasized the importance of diverse computing solutions in the face of competition with Nvidia NVDA led by her cousin Jensen Huang. What Happened: Su stated on Wednesday that there is "no one size fits all in computing." "There's no, you know, only one architecture. Actually, you're going to need the right compute for each application," she added, during an interview with CNBC's Jim Cramer. Su highlighted that the semiconductor industry benefits from both competition and collaboration among companies. Su also discussed the future impact of artificial intelligence (AI), predicting that AI will become integral to everyday life across sectors such as business, education, and healthcare. She forecasted the AI accelerator market to reach $400 billion by 2027. Su concluded by urging patience with tech trends, noting that significant advancements unfold over years, not months. See Also: Mark Cuban Says He Would Buy Rupert Murdoch's Fox News And Elon Musk's X But There Are Some Obstacles: 'If I Had Enough... I'd Buy It In A Heartbeat' Why It Matters: The rivalry between AMD and Nvidia has intensified, particularly in the AI sector. Recently, Su highlighted AMD's shift away from flagship gaming GPUs to focus on AI, projecting $4.5 billion in MI300X AI chip sales for 2024. She emphasized that AMD's AI roadmap includes the annual release of new AI chips, starting with the MI325 later this year, followed by the MI350 in 2025 and the MI400 in 2026. This move aims to challenge Nvidia's dominance in AI chip technology. The competition is heating up as both companies vie for a larger share of the AI market. As of Sep. 13, AMD's stock has risen 39.98% over the past year, while Nvidia's has surged 161.90%. Year-to-date, AMD is up 8.80%, and Nvidia has soared 147.33%. Nvidia's first-mover advantage in the AI space has helped it amass a market cap of over $2.9 trillion, with AMD trailing at around $245 billion. Price Action: At the time of writing, AMD was trading 3.18% higher during pre-market on Thursday while Nvidia was up by 2.80%, according to Benzinga Pro. Read Next: JPMorgan CEO Jamie Dimon Thinks Social Media Platforms Like TikTok And Facebook Are 'A Total Stupid Waste Of Time' Image made via photos on Shutterstock and Wikimedia Commons This story was generated using Benzinga Neuro and edited by Pooja Rajkumari Market News and Data brought to you by Benzinga APIs