AMD (AMD, Financial) CEO Lisa Su announced that the company's latest AI processors are set to challenge NVIDIA's offerings, with the AI market expected to surpass $500 billion in the next three years. Speaking at a company event in San Jose, California, Su highlighted that the new MI350 series chips outperform NVIDIA's competitors, achieving significant breakthroughs over previous models. The MI355 chips, shipping this month, boast a 35-fold performance increase.
While AMD remains behind NVIDIA in the AI accelerator market, it aims to close the gap with these new products. Su had previously predicted a $500 billion market by 2028, but now believes this figure will be exceeded. The MI355 chips reportedly outperform NVIDIA's B200 and GB200 products in AI software performance and are priced significantly lower.
Despite the new product launch, investor reaction was lukewarm, with AMD shares closing down 2.2% at $118.50. AMD's AI accelerator business has helped it compete against Intel in the PC processor market, but NVIDIA remains a dominant force, with annual revenues exceeding $100 billion.
Su also previewed the MI400 series, expected next year, which promises a clear advantage over NVIDIA's offerings. AMD is working to expand AI chip sales despite U.S. trade restrictions, actively lobbying for more export freedom.
