In an attempt to take on market leader Nvidia, Advanced Micro Devices introduced new AI processors along with a roadmap for developing AI chips over the next two years.

The MI325X accelerator was unveiled by AMD CEO Lisa Su at the Computex technology trade expo in Taipei. It is scheduled for release in the fourth quarter of 2024.

The drive to create generative AI applications has resulted in an enormous demand for the cutting-edge CPUs needed in AI data centers that can handle these intricate applications.

AMD, a company situated in Santa Clara, California, has been trying to compete with Nvidia, which presently holds a commanding 80% market share in the lucrative AI chip business.

AMD also unveiled the MI350 chip series, which will be built on a revolutionary chip architecture and should go on sale in 2025.

AMD stated that it anticipates the MI350 to perform 35 times better in inference—the process of calculating generative AI responses—than the MI300 family of AI chips already on the market. AMD also unveiled the MI400 series, which will debut in 2026 and is built on the "Next" architecture.

Investors assessing the endurance of the soaring genAI rally—which has so far showed no signs of slowing down—have been looking to chip companies for longer-term updates. These investors have thrown billions of dollars into Wall Street's picks-and-shovels bet.

Since the beginning of 2023, AMD's stock has more than doubled. This increase is still insignificant when compared to the more than seven-fold increase in Nvidia's stock price during the same timeframe.

AMD wants to achieve a one-year release cycle for AI chips. Nvidia also declared that it would launch a new line of AI chips each year.

Although AI chips are usually the top priority for enterprises when it comes to data centers, AMD's CPUs are sometimes employed in conjunction with graphics processing units (GPUs), albeit the ratio is skewed in favor of GPUs.

Chipmakers have been counting on increased AI capabilities to propel PC market expansion as it bounces back from a protracted downturn.