© Reuters. FILE PHOTO: AMD Chief Executive Lisa Su holds the company’s new MI300X chip at an event outlining AMD’s artificial intelligence strategy in San Francisco, U.S., June 13, 2023. REUTERS/Stephen Nellis/File Photo
By Max A. Cherney
(Reuters) – AMD estimated there was a $45 billion market for data center artificial intelligence processors this year as it launched a new generation of AI chips on Wednesday.
Advanced Micro Devices (NASDAQ:) announced two new AI data center chips from its MI300 lineup: one focused on generative AI applications, and a second chip geared toward supercomputers. The version of the processor for generative AI, the MI300X, includes advanced high-bandwidth memory that improves performance.
As AMD launched the new processors, company executives outlined how rapidly demand for AI chips has increased. The company said it now expects the market for data center AI chips to grow to roughly $400 billion by 2027.
Analysts estimate that Nvidia (NASDAQ:) has captured roughly 80% of the AI chip market, when including the custom processors built by companies such as Alphabet (NASDAQ:)’s Google and Microsoft (NASDAQ:). Nvidia does not break out its AI…
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