Prime Highlights:
- AMD CEO Lisa Su forecasts the global data center chip market will reach $1 trillion by 2030, driven primarily by AI demand.
- The company unveiled plans for next-generation MI400 AI chips and a complete AI server rack system to rival Nvidia’s offerings.
Key Facts:
- AMD signed a multiyear $100 billion deal with OpenAI, giving the AI firm an option to acquire up to a 10% stake in AMD.
- The MI400 AI chip series, launching in 2026, will feature variants tailored for scientific and generative AI applications.
Background
Advanced Micro Devices (AMD) expects the global market for data center chips to touch $1 trillion by 2030, led by rising demand for artificial intelligence (AI) applications, CEO Lisa Su said during the company’s analyst day at Nasdaq, New York.
Su emphasized that AI will be the main growth driver, covering AMD’s CPUs, networking chips, and specialized AI processors. “It’s an exciting market,” Su said, adding that the data center business remains AMD’s biggest opportunity and that the company is “well positioned” to lead in this space.
AMD’s next-generation MI400 AI chip series, expected in 2026, will include variants for scientific and generative AI uses. The company also plans to introduce a complete AI server rack system, similar to Nvidia’s GB200 NVL72.
To strengthen its AI ecosystem, AMD has acquired several startups, including ZT Systems and MK1, as part of its broader M&A strategy to expand software capabilities. “the company plans to keep making small acquisitions of AI software firms.” said Chief Strategy Officer Mat Hein.
AMD recently signed a multiyear deal with OpenAI worth over $100 billion. The agreement gives OpenAI the option to buy up to a 10% stake in AMD. This partnership is a big step for AMD as it works to compete more closely with Nvidia in the growing AI market.
Even though AMD’s shares fell 2.3% to $238.31 on Tuesday, its strong forecast and focus on AI show confidence in its future growth.
