Although Nvidia is the undisputed chief in AI chips, capturing over 80% of the market, AMD CEO Lisa Su says AMD’s newest chips are “outperforming” Nvidia’s with “higher effectivity.”
Su mentioned at an AMD launch occasion on Thursday in San Jose, California, that AMD’s new MI350 chips are as much as 35 instances quicker than earlier generations, per Bloomberg. The MI350 chips started delivery out earlier this month.
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In relation to working AI packages, Su claims that AMD’s MI355 chip gives “higher effectivity” in comparison with Nvidia’s B200 and GB200 chips, which have been launched in 2024. She mentioned that the MI355X chip “matches the efficiency of the considerably costlier and complicated [Nvidia] GB200” at a cheaper price level. Demand has pushed up the value of AI chips, which might every value tens of 1000’s of {dollars}, in line with The New York Times. Nvidia’s chips can value up to four times more than competing AMD chips.
OpenAI CEO Sam Altman made an look on stage with Su on the occasion to say that his firm would use the most recent AMD chips.
“It’ll be an incredible factor,” Altman mentioned on the occasion, per CNBC.
AMD CEO Lisa Su. Picture by Chip Somodevilla/Getty Photos
Su mentioned that the MI355 chip processes 40% extra tokens, or items of textual content that AI fashions use to grasp and course of information, in comparison with chips from rivals like Nvidia.
“MI355 can ship as much as 40% extra tokens per greenback than competing options,” Su mentioned on the occasion.
Regardless of Su’s assertions that AMD chips are extra environment friendly than Nvidia’s, Nvidia leads the AI chip market with 85.2% of the market share in comparison with AMD’s 14.3%, in line with estimates shared with Bloomberg by international analysis agency IDC.
Different corporations place Nvidia even additional forward. Jon Peddie Analysis, a number one evaluation agency, reported last week that Nvidia had 92% of the marketplace for AI chips within the first quarter of 2025, in comparison with 8% for AMD.
Nvidia and AMD are the business leaders in superior laptop graphics chips, that are foundational to AI improvement. Nvidia CEO Jensen Huang mentioned in September that his largest fear was intense demand for AI expertise, as tech corporations pour billions of {dollars} into investments in AI infrastructure. A few of Nvidia’s largest shoppers, together with Meta, Microsoft, Amazon, and Google, have every pledged tens of billions of dollars in direction of AI spending this yr.
In flip, Nvidia and AMD have additionally grown their backside line.
Nvidia achieved a report full-year income of $130.5 billion, up 114% from a yr in the past, for the fiscal yr ending Jan. 31. Analysts predict that Nvidia’s AI chip gross sales will rise to $262 billion by 2030.
AMD additionally set a brand new report in 2024, with income of $25.8 billion, up 24% year-over-year. The corporate had a market capitalization of $190 billion on the time of writing, in comparison with Nvidia’s $3.49 trillion.
