AMD's CEO Lisa Su forecasts that the company's Instinct accelerators will generate tens of billions in annual revenue despite concerns that emerging efficient AI models might reduce the need for extensive computing infrastructure. In a recent earnings call, Su emphasized that advancements in models and algorithms benefit AI adoption. She anticipates substantial revenue growth in the latter half of FY 2025, bolstered by the launch of new MI355X accelerators. This optimistic outlook comes as AMD adapts to the evolving market dynamics shaped by models like DeepSeek that operate with fewer resources.
"Relative to DeepSeek, we think that innovation on the models and the algorithms is good for AI adoption," Su told analysts on Tuesday's Q4 earnings call.
"The fact that there are new ways to bring about training and inference capabilities with less infrastructure is actually good," said Su.
Su expects Instinct revenues to increase significantly compared to the $5 billion-plus they brought in during the 2024 fiscal year.
Su’s strongest growth would come in the second half of FY 2025, driven by shipments of AMD’s next-gen MI355X accelerators.
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