AMD sees AI chip market topping $500 bn by 2028, unveils MI350 GPU series

Advanced Micro Devices (AMD) Chief Executive Lisa Su has said that the chipmaker sees the artificial intelligence processor market topping $500 billion by 2028.

The Silicon Valley company said the market is likely to grow at over 60 per cent annually to exceed $500 billion, from being a $45 billion opportunity in 2023.

Addressing the company's flagship Advancing AI 2025 conference here on Thursday, Su said the growth will be led by the inferencing work, which is a shift from training.

"What I can tell you based on everything that we see today is that that number is going to be exceeding USD 500 billion by 2028," Su said.

The company unveiled the "MI350 Series GPUs (graphic processing units)" at the flagship event along with a host of other products.

Su said opting for the newly launched chips may be beneficial for customers, claiming that they issue up to 40 per cent more tokens per dollar.

It can be noted that Nvidia is generally considered an entrenched player in the GPUs market, and the demand for its chips is very high. There are waiting periods as well for the chips.

In her address, Su said that seven of the 10 largest AI customers, including the largest Indian telco Reliance Jio, are deploying AMD Instinct Accelerators at present.

AMD had last year announced the MI350 and announced that the same offering, which has displayed a four-times increase in compute as compared to the previous generation, is in production now and will be commercially available from the third quarter onwards.

During her address, Su spoke with a slew of clients and partners, including OpenAI chief executive Sam Altman, and senior executives from other companies like Meta, Microsoft and Oracle.

Su said the company is focused on open architecture as a fundamental tenet in its approach to serving the AI world, an aspect which is different from the approach adopted by Nvidia.

The company also launched a developer cloud access programme, under which it will grant access to the developer community to try and use its offerings first-hand.

Su said the company believes that innovation happens faster when something is thrown open for the developers, and backed it up by citing examples from history as well.

It also showcased the 'Helios AI Rack Scale' solution, a fully integrated AI platform and announced that the same will be available from the next year onwards.