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Post by : Badri Ariffin
NEW YORK – In a bold move, Advanced Micro Devices (AMD) is setting ambitious goals. CEO Lisa Su outlined at the company’s analyst day that the potential for AMD’s data center chip market is expected to hit $1 trillion by 2030, primarily fueled by the rise of artificial intelligence.
The company’s offerings include central processing units (CPUs), networking components, and specialized AI processing units. Su noted that the AI boom has opened up a unique avenue for AMD to enlarge its influence in data centers, increasingly regarded as the powerhouse of contemporary computing.
Though AMD has made significant advances in the CPU sector against its longstanding rival Intel, it contends with formidable competition in AI infrastructure from Nvidia, which has dominated the space for high-performance data center chips. Nevertheless, AMD is poised for growth. Plans for the rollout of its next-generation MI400 AI processors are set for 2026, with versions aimed at both scientific research and generative AI uses. Alongside this, AMD is also working on a comprehensive server rack solution, mirroring Nvidia’s existing GB200 NVL72 product.
In a bid to bolster its AI proficiency, AMD has been acquiring AI-centric companies, including server manufacturer ZT Systems and emerging software firms like MK1. These strategic acquisitions are designed to enhance both technology and human resources, ensuring AMD can optimize AI functionality. “We’re dedicated to developing the tools and software that enable AI to operate efficiently,” remarked Chief Strategy Officer Mat Hein.
Recent partnerships have further solidified AMD’s market standing. The company inked a multiyear agreement with OpenAI in October, projected to bring in over $100 billion in revenue over the next four years. OpenAI will also have the option to acquire up to a 10% equity stake in AMD, solidifying their partnership.
The impact of AI is evident in AMD’s financial forecasts, which predict fourth-quarter revenue that surpasses market expectations, largely due to robust demand for AI-centric chips. While AMD shares faced a slight decline, executives maintain a positive outlook concerning growth in the data center segment.
As AI reshapes industries and boosts demand for cloud computing, AMD is making a significant investment, betting that its combination of CPUs, AI processors, server solutions, and calculated acquisitions will secure its position within the lucrative trillion-dollar data center market of the future.
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