Advanced Micro Devices, Inc. (NASDAQ: AMD) has announced a strategic challenge to Nvidia Corp. (NASDAQ: NVDA) by unveiling new AI chips aimed specifically at the corporate data center market. During the Consumer Electronics Show (CES), CEO Lisa Su introduced the MI440X, an accelerator tailored for businesses that wish to implement AI capabilities within their own on-site data centers, thereby maintaining greater control over sensitive data.
In her presentation, Su highlighted the significance of the more powerful MI455X, which she described as a substantial upgrade for organizations looking to develop advanced AI server systems. According to Bloomberg, this new generation of chips is expected to meet the increasing demand for computing power, which Su argues is critical as industries continue to expand their AI capabilities.
The CEO emphasized that the current market still lacks sufficient capacity to accommodate the growth in AI development. She expressed optimism about ongoing investments in AI technology, indicating that AMD anticipates sustained spending in this sector. To bolster its credibility, the company has strengthened its partnership with OpenAI. Co-founder Greg Brockman joined Su on stage to underscore the growing need for enhanced computing resources.
AMD’s upcoming Helios system, designed around the MI455X, is set to be released later this year. Additionally, the company plans to introduce its Venice CPU design while a next-generation MI500 lineup is scheduled for 2027. Su claims this architecture could deliver performance increases of up to 1,000 times compared to the MI300 series launched in 2023.
Expanding AI Beyond Data Centers
In a further push to extend AI capabilities, AMD is venturing into devices operating outside traditional data centers. The company introduced the new Ryzen AI Embedded processors, which aim to integrate AI functionality into various applications, including vehicles, medical devices, and industrial machinery. These processors are engineered to perform graphics, computing, and AI tasks simultaneously, allowing companies to enhance their products without the necessity for additional hardware.
The advancements in these chips enable faster machine responses and improved real-time processing while consuming less power and occupying less space. AMD asserts that this innovation allows businesses to embed AI features directly into their offerings instead of relying on cloud-based solutions.
Enhancements for PCs and Gaming
AMD also unveiled a range of new chips designed to enhance AI functionalities in personal computers. The Ryzen AI 400 Series is targeted at next-generation Windows AI laptops, while the Ryzen AI Max+ chips cater to premium notebooks and compact desktops. These products are crafted to meet the needs of users requiring additional power for creative tasks and AI applications.
For corporate users, AMD launched the Ryzen AI PRO 400 Series, which includes enhanced security features and simplified management for IT teams. Additionally, AMD introduced the Ryzen AI Halo, a compact system designed to assist developers in creating and testing AI tools locally, rather than depending solely on cloud services.
For gamers, AMD showcased the Ryzen 7 9850X3D, a new desktop chip aimed at delivering superior gaming performance compared to previous models. The company also updated its graphics software to enhance game performance and visual clarity, making strides in the gaming sector.
As of the latest report, shares of Advanced Micro Devices rose by 1.07% to reach $223.45. AMD’s aggressive expansion into AI technology and its commitment to meeting the demands of modern computing positions the company as a significant contender in the evolving landscape of AI hardware.
