AMD Challenges Nvidia with New AI Chips

Updated: 13 Jun 25

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AMD has unveiled its latest AI processors, including the MI355 and the upcoming MI400 series, aimed at rivaling Nvidia's dominance in the AI chip market. The MI355 is 35 times faster than its predecessor, while the MI400 series, supported by partners like OpenAI, promises groundbreaking performance by 2026. Despite the ambitious advancements, AMD's stock fell 2% amid mixed investor reactions.

AMD's Latest AI Chip Innovations

Advanced Micro Devices (AMD) recently announced the launch of its MI355 chips, which represent a significant leap in performance compared to their predecessors. According to CEO Lisa Su, the MI355 chips are 35 times faster than earlier versions, marking a major step forward in AMD's efforts to challenge Nvidia's dominance in the AI chip market. This new installment in AMD's MI350 series is designed to provide faster processing capabilities for artificial intelligence tasks, positioning AMD as a viable competitor in a market expected to exceed $500 billion by 2028.

Looking ahead, AMD is preparing to launch its MI400 series, which CEO Su claims will achieve clear leadership over Nvidia’s AI chips currently on the market. These chips are designed with enhanced memory components that allow faster data access, a crucial advantage for running complex AI software. Notably, OpenAI CEO Sam Altman, a key collaborator, has expressed optimism about the MI400 series, stating that its specifications are set to meet the rising demands of AI infrastructure. AMD’s roadmap reflects its ambition to capture a larger share of the rapidly growing AI chip sector.

Key Partnerships and Market Strategy

AMD has strategically aligned itself with prominent partners, including OpenAI, Microsoft, Meta, and Oracle, to strengthen its position in the AI chip market. OpenAI, the developer of ChatGPT, has been particularly vocal about its collaboration with AMD, with CEO Sam Altman praising the capabilities of AMD’s forthcoming MI400 series. These partnerships demonstrate AMD’s ability to attract high-profile customers by delivering cutting-edge technology tailored to the needs of advanced AI systems.

In addition to product innovation, AMD is focusing on competitive pricing as a tactic to gain market share from Nvidia. While Nvidia remains the market leader with AI chip revenues exceeding $100 billion annually, AMD’s MI355 chips reportedly offer comparable or superior performance at a lower cost. This pricing strategy, combined with its partnerships, aims to restore AMD’s growth trajectory after a period of slower-than-expected data center revenue. By leveraging these collaborations and delivering high-performance products, AMD is positioning itself to challenge Nvidia and reclaim momentum in this lucrative industry.