Advanced Micro Devices is starting to roll out its newest chips for artificial intelligence, the company said on Wednesday, presenting Nvidia with perhaps its toughest challenge yet in the race to supply semiconductors that undergird the AI boom. The chips are expected to become widely available as manufacturers of servers incorporate them into their systems and cloud-computing companies including Microsoft and Oracle begin to offer access to them. Microsoft said the chips would be available for customers to evaluate on Wednesday. “The year has shown us that AI isn’t just kind of a cool new thing; it’s actually the future of computing,” Chief Executive Lisa Su said, describing AI as a shift akin to the dawn of the internet. AMD is already expecting a strong reception. The company said in its latest earnings report that it anticipated $400 million of revenue from its AI chips in the fourth quarter and more than $2 billion next year, driven by insatiable demand for computing power that is necessary to produce advanced AI systems such as OpenAI’s ChatGPT or Google’s Bard. AMD’s shares were relatively flat midday Wednesday. Nvidia dropped 1.4%. Nvidia has been the dominant player in the AI chip market. The company reported about $14.5 billion of sales in the division that houses its AI chips for its latest quarter, up from $3.8 billion the same period the previous year. The sharp jump in sales sent Nvidia’s stock soaring, and the company became one of a handful worth more than $1 trillion in June.
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