AMD Launches New AI Chips to Challenge Nvidia’s Dominance in Data Centers

Advanced Micro Devices, Inc. (NASDAQ:AMD) has unveiled a new line of AI chips as part of its strategy to compete with Nvidia Corp. (NASDAQ:NVDA) in the growing market for artificial intelligence hardware. At the Consumer Electronics Show (CES), AMD’s CEO, Lisa Su, introduced the MI440X, an accelerator aimed at businesses looking to manage AI within their own data centers, ensuring sensitive information remains in-house.

In addition to the MI440X, Su highlighted the MI455X, which she described as a significant upgrade for companies constructing advanced AI server systems. The announcement underscores AMD’s belief that the demand for computing power in the AI sector continues to expand, with Su noting that current industry capacity isn’t sufficient to meet the needs of developers and enterprises.

New Partnerships and Future Products

AMD is strengthening its credibility through its partnership with OpenAI. During the presentation, OpenAI co-founder Greg Brockman joined Su on stage to emphasize the increasing demand for computational resources. AMD is set to release its Helios system, built around the MI455X, along with the upcoming Venice CPU design later this year. Furthermore, the next-generation MI500 lineup is expected to debut in 2027, with Su claiming it could achieve up to 1,000 times the performance of the MI300 series launched in 2023.

AMD is not only focusing on data centers but is also pushing AI capabilities into devices that function outside traditional server farms. The company introduced its new Ryzen AI Embedded processors, designed to integrate powerful AI functions into various devices, including vehicles, factory machinery, medical devices, and robots. These chips enable faster processing and real-time responses while minimizing power consumption and space requirements.

Enhancing Everyday Computing with AI

In addition to its AI-focused hardware, AMD has rolled out a series of chips intended to enhance laptops and desktops with built-in AI capabilities. The Ryzen AI 400 Series targets next-generation Windows AI laptops, while the Ryzen AI Max+ chips cater to premium notebooks and compact desktops that require additional power for creative and AI-driven tasks. For corporate environments, AMD has launched the Ryzen AI PRO 400 Series, designed with added security and management features for IT teams.

To facilitate AI development, AMD introduced the Ryzen AI Halo, a compact system aimed at assisting developers in creating and testing AI tools locally rather than solely relying on cloud services. The company also announced new software updates and bundled tools intended to simplify the setup and use of AI applications on AMD-powered devices.

For gamers, AMD unveiled the Ryzen 7 9850X3D, a desktop chip that promises improved gaming performance compared to its predecessor. Alongside this, AMD updated its graphics software to enhance the visual quality and smoothness of select games.

At the time of publication, shares of Advanced Micro Devices were trading up 1.07% to $223.45, according to data from Benzinga Pro. This latest product launch positions AMD as a more formidable player in the competitive AI hardware market, potentially reshaping the landscape as demand for AI technology continues to surge.