AMD plans to expedite the release of its next-generation data center GPUs, the AMD Instinct MI350 series, responding to surging demand in the AI compute market. Originally set for a launch in the second half of 2024, the company now aims to sample the MI350 with lead customers within this quarter. The production ramp is also moved forward to mid-year, reflecting AMD's strategic push to capture a growing slice of the lucrative data center market.
AMD's data center business has seen impressive growth and is poised to reach tens of billions of dollars in the coming years. Last year alone, data center revenue constituted approximately half of AMD's overall revenue, totaling $3.9 billion out of $7.1 billion. The company's projections indicate continued expansion, with expectations for double-digit growth in the segment by 2025. Furthermore, sales of AMD Instinct chips soared past $5 billion in 2024, underscoring the robust demand for advanced computing solutions.
The company's efforts to accelerate the MI350 series' release are driven by strong customer demand. Lisa Su, AMD's CEO, highlighted this in a statement:
“So, we had previously stated that we thought we would launch [the MI350] in the second half of [2025],” – Lisa Su
Su further elaborated on the favorable developments enabling the earlier launch:
“And frankly, that bring-up has come up better than we expected, and there’s very strong customer demand, so we are actually going to pull that production ramp into the middle of the year, which improves our relative competitiveness.” – Lisa Su
Despite AMD's significant progress, its data center revenue remains dwarfed by rival Nvidia, whose quarterly performance regularly surpasses tens of billions of dollars. Nonetheless, AMD has gained considerable traction in the market over the past year by acquiring and retaining high-profile customers such as Meta, Microsoft, and IBM.
The decision to advance the MI350's launch timeline aims to leverage the current momentum and capitalize on burgeoning opportunities in AI compute. By addressing the increasing demands efficiently, AMD seeks to enhance its competitiveness and bolster its position against formidable competitors.
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