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AMD Accelerates the Launch of Next-Gen Data Center GPUs
In a surprising turn of events, AMD has announced a revamped timeline for the release of its next-generation data center GPUs, the AMD Instinct MI350 series. During the recent Q4 2024 earnings call, CEO Lisa Su revealed the company’s intention to begin sampling these new GPUs with key customers this quarter, significantly preceding the previously expected launch date of the second half of 2025.
Customer Demand Drives Early Production
Lisa Su attributed this accelerated timeline to robust customer demand, noting that AMD's production ramp-up would now take place mid-year. With this strategic pivot, AMD seeks to enhance its competitive stance against industry giant Nvidia, which consistently dominates the data center GPU market, pulling in tens of billions in revenue each quarter.
Breaking Down AMD Data Center Revenue Growth
Despite facing stiff competition, AMD has made significant strides in its data center sector, reportedly raking in over $5 billion in sales from its Instinct chips in 2024. This surge is part of a larger narrative of growth, with AMD projecting its data center revenue to expand in double digits throughout 2025. In the previous year, data center revenue represented around half of AMD's total revenue—an impressive feat for a company once overshadowed by larger competitors.
The Implication of Increased AI Compute Demand
Su firmly believes that the demand for AI compute capabilities remains strong, projecting an upward trajectory for AMD's data center business in the coming years. As more enterprises look to leverage data for AI applications, AMD’s early release of the MI350 could position the company favorably within the rapidly evolving landscape of cloud computing and artificial intelligence.
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