AMD has significantly increased its forecast for the market capacity
Hardware

AMD has significantly increased its forecast for the market capacity of accelerators for AI systems

AMD’s event, which re-demonstrated the Instinct MI300 and MI300X computing accelerators, was used by company management to update its core market capacity forecast. While the company recently estimated this parameter at $150 billion in 2027, it has now raised the bar to $400 billion.

    Image source: AMD

Image source: AMD

At the same time, CEO Lisa Su did not adjust the forecast for the coming year, saying that the company’s revenue from sales of artificial intelligence accelerators will be generated in 2024 “will significantly exceed the $2 billion mark”. AMD estimated the core market’s capacity at $45 billion this year, up from $30 billion in June, but both figures also take into account revenue from sales of such accelerators by competitors. According to industry analysts, AMD’s total revenue next year will be $26.5 billion, so the company will generate about 10% of its total revenue from sales of AI accelerators. In the last three quarters of this year, NVIDIA earned $29.12 billion in the data center segment, but this amount also included revenue from sales of networking solutions, not just computing accelerators. In the third quarter alone, NVIDIA’s revenue in this segment exceeded $14 billion.

As explained BloombergIn an interview with the agency, Lisa Su said that the creation of artificial intelligence systems that can compete with humans is now happening “is within reach”, but the diffusion of the technology is currently in its early stages. The company has already secured the support of major customers such as Microsoft, Oracle, Meta Platforms and OpenAI. The latter will use accelerators in the small Triton language model, which will be used for experimental research in the field of artificial intelligence. Microsoft has promised to implement Instinct MI300X accelerators in its Azure cloud infrastructure. Dell and IBM have also expressed their willingness to use new AMD accelerators.

Lisa Su does not believe that the computing accelerator market will be divided between only two companies and, in her opinion, there will be room for competitors AMD and NVIDIA. At the same time, she recognizes the dominance of the latter: “I think you can say that clearly NVIDIA now controls the majority of the AI ​​market. We expect capacity to exceed $400 billion by 2027. And we could get a good piece.”.

The AMD boss did not provide details on how much the Instinct MI300 and MI300X accelerators would cost, but hinted that they should not only be cheaper to buy but also cheaper to operate in order to convince customers to buy products to switch to this brand. NVIDIA H100 family accelerators reach prices of up to $40,000, giving AMD room to maneuver from a marketing perspective. At the same time, the company boss is confident that he will have sufficient stocks of accelerators to meet demand next year. In the current quarter, revenue from their sales will exceed $400 million.

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Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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