AMD Sees Opportunity in Chinese Market

AMD has announced its intention to develop an artificial intelligence (AI) chip specifically for the Chinese market. This move is in response to U.S. export curbs and follows similar actions by competitors Nvidia and Intel.

Lisa Su, CEO of AMD, emphasized the importance of the Chinese market and the company’s commitment to comply with U.S. export controls. While ensuring compliance, AMD also aims to meet the demand for AI solutions from its Chinese customers.

Accelerator chips, which are essential for training large amounts of data in AI applications, are the target market for AMD’s development efforts.

Competition with Nvidia and Intel

AMD plans to increase the production of its MI300 chip, positioning it as a competitor to Nvidia’s graphics processing units used for AI training. Although Nvidia currently dominates the market, AMD aims to challenge its position with its latest chip.

Earlier this year, the U.S. government prohibited Nvidia from selling its A100 and H100 chips to China, with the H100 being a crucial AI chip for Nvidia. In response, Nvidia modified the specifications of the H100 to comply with the export curbs. Similarly, Intel also developed a modified version of its Gaudi 2 AI chips for the Chinese market.

China, with its limited domestic alternatives to Nvidia, remains a lucrative market for U.S. chipmakers, particularly in the field of AI.

The Significance of AMD’s MI300 AI Chip

AMD’s success largely depends on its MI300 AI chip as it strives to compete with Nvidia. The company expects the chip to contribute to significant growth in its data center business for the second half of the year.

According to Lisa Su, AMD anticipates around 50% growth in its data center business for the second half of the year compared to the first half, driven in part by the new AI chip.