AMD Bets on AI PCs to Compete with Nvidia and Intel

As the race for artificial intelligence (AI) technology heats up, U.S. chip giant Advanced Micro Devices (AMD) is placing its bets on AI PCs to take on competitors like Nvidia and Intel. In an exclusive interview with CNBC, AMD President Victor Peng expressed his belief that the market for AI PCs will continue to expand, with more adoption expected in the second half of the year. AI PCs are personal computers embedded with processors specifically designed to perform AI functions, such as real-time language translation.

Tech research firm Canalys predicts that the boom in generative AI will boost PC sales, estimating that 60% of the PCs shipped in 2027 will be AI-capable. This surge of interest in AI was triggered by the launch of ChatGPT in November 2022, a chatbot renowned for its ability to generate human-like responses. HP President and CEO Enrique Lores also expressed excitement about the impact of AI PCs in the overall PC category, although he acknowledged that it might take some time for them to penetrate deep into the market.

Initially, AI-powered devices will target certain segments of the enterprise PC market. However, as more use cases emerge and cost reductions occur, their deployment is expected to spread to the broader market over time. International Data Corporation (IDC) predicts that the integration of AI capabilities into PCs will serve as a catalyst for upgrades, with these AI PCs hitting the shelves this year. Despite the competitive landscape, Peng is confident in AMD’s position in the AI market, stating, “We are seeing AI PCs becoming a bigger factor, and we have a good lead in AI PCs with the recent announcements.”

AMD faces strong competitors in the AI space, particularly Nvidia and Intel. Nvidia currently dominates the market for graphics processing units (GPUs) used in AI applications. Many prominent AI models, like OpenAI’s ChatGPT, run on Nvidia GPUs such as the H100 in the cloud. To strengthen its position, Nvidia recently announced new GPUs specifically designed for running generative AI applications on PCs. The company also plans to supply GPUs for laptops manufactured by Acer, Dell, Lenovo, and other companies.

Intel, on the other hand, introduced Core Ultra chips in December, which are designed to run AI programs faster. These processors will power more than 230 of the world’s first AI PCs from companies like Acer, ASUS, Dell, HP, and Lenovo. Despite the significant competition, Peng remains optimistic about the future of AI, stating, “AI is going to continue to be very big this year and beyond. I mean, as large as the opportunities already are, we’re still in the early innings of AI.”

In December 2021, AMD launched the new Instinct MI300X chips, specifically designed for large language model training, aimed at competing with Nvidia’s H100 chips. Peng highlights that AI is not limited to data center GPUs but encompasses servers as well. AMD gained significant market share in servers last year and expects to continue this trend with the MI300 chips.

To further solidify its position, AMD announced the Ryzen 8000G Series desktop processors in January. These processors promise immense power and dominant performance for intensive workloads, including gaming and content creation. By offering both high-performance computing and AI capabilities, AMD aims to establish itself as a formidable player in the AI PC market.

As the demand for AI continues to grow, AMD’s focus on AI PCs demonstrates its commitment to meeting the evolving needs of consumers. With the anticipated expansion of the AI PC market, AMD is confident that its technological advancements will enable it to compete head-on with rivals Nvidia and Intel. By offering powerful processors and capitalizing on industry trends, AMD aims to carve out a significant share of the AI PC market and establish itself as a leader in the AI revolution.

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