Chipmaker AMD says it expects the global market for data centre AI chips to grow to roughly $400 billion by 2027.
And AMD estimated there was a $45 billion market for its own data centre artificial intelligence processors this year, as it launched a new generation of AI chips on Wednesday.
The total addressable market forecast is up from AMD’s $30 billion estimate in June and comes as the firm announced two new AI data centre chips from its MI300 lineup – one focused on generative AI applications, and a second chip geared toward supercomputers.
The version of the processor for generative AI, the MI300X, includes advanced high-bandwidth memory that improves performance.
For next year, AMD has a “significant” supply of AI chips that is “well above” $2 billion worth, CEO Lisa Su said at a press briefing. “So there’s a lot of supply that we have, let’s call it reserved, and we have a lot of customers, well above the $2 billion as well,” Su said.
As AMD launched the new processors, company executives outlined how rapidly demand for AI chips has increased. The company said it now expects the market for data centre AI chips to grow to roughly $400 billion by 2027.
Analysts estimate that Nvidia has captured roughly 80% of the AI chip market, when including the custom processors built by companies such as Alphabet’s Google and Microsoft.
Nvidia does not break out its AI revenue, but a significant portion is captured in the company’s data centre segment. So far this year, Nvidia has reported data centre revenue of $29.12 billion.
AMD’s MI300 series launched on Wednesday is positioned to compete with Nvidia’s flagship AI processors.
AMD also unveiled a new version of the software necessary to deploy the chips for AI.
- Reuters with additional editing by Sean O’Meara