"AMD, focused more on CPUs and gaming graphics, entered the AI race later with its Instinct series accelerators. But recent innovations have propelled it forward. The MI300X chip, launched in late 2023, delivered competitive performance for AI training at a lower cost than Nvidia's equivalents. This caught the eye of hyperscalers seeking alternatives to reduce dependency on one supplier. AMD's roadmap, including the upcoming MI450 set for 2026, promises even greater efficiency in inference tasks - running trained models at scale."
"Today, AMD holds about 10% to 15% of the AI GPU market, up from near zero in 2022. Partnerships with Microsoft ( NASDAQ:MSFT ), Meta Platforms ( NASDAQ:META ), and now Oracle ( NASDAQ:ORCL ) underscore its momentum. Still, it trails Nvidia's trajectory, where the latter commands over 80% market share and a valuation exceeding $4.4 trillion. Nvidia's CUDA software ecosystem remains a sticky advantage, locking in developers. AMD counters with open-source ROCm, gaining traction but not yet at parity."
AMD transitioned from a laggard to a meaningful AI chip competitor by developing the Instinct accelerator line and delivering the MI300X in late 2023. The MI300X offered competitive AI training performance at lower cost, attracting hyperscalers seeking alternatives to Nvidia. AMD's market share rose to roughly 10–15% from near zero in 2022, supported by partnerships with Microsoft, Meta, and Oracle. A roadmap including the MI450 for 2026 targets improved inference efficiency. Nvidia retains over 80% market share and a dominant CUDA ecosystem. AMD promotes open-source ROCm and has seen its stock surge 93% in 2025.
Read at 24/7 Wall St.
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