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A blow to Nvidia? Meta and Microsoft are looking for alternatives | Israel Hayom

2023-12-10T07:29:48.860Z

Highlights: A blow to Nvidia? Meta and Microsoft are looking for alternatives. At an investor event, the tech giants announced their intentions to switch to the new and cheaper chips of the American company. If AMD's high-end AI chip meets expectations - it could lead to significant cost reductions in the field of developing AI-based models. The big question - will companies bother to make the switch?. According to AMD, the total market for AI processors could climb to $400 billion over the next four years.


At an investor event, the tech giants announced their intentions to switch to the new and cheaper chips of the American company • If AMD's high-end AI chip meets expectations - it could lead to significant cost reductions in the field of developing AI-based models • The big question - will companies bother to make the switch?


Meta, OpenAI and Microsoft said last week at an AMD investor event that they would switch to using the company's new chip, the Instinct MI300X, in what appears to be the biggest expression yet of the big tech companies' desire to find an alternative to Nvidia's expensive processors.

If AMD's high-end new chip is good enough for companies engaged in AI-based services, it will lead to significant cost reductions when it comes to developing AI-based models and is expected to put a lot of pressure on Nvidia, whose processors have until now been essential for creating and deploying AI-based software like ChatGPT.



A young man who began to walk thanks to an artificial intelligence chip. AI can work wonders in medicine and patient care Photo: Reuters



According to AMD, the company's new chip is based on a new architecture, which leads to significant performance improvements. The most distinctive feature of the chip is an innovative and high-performance type of 192GB memory known as HBM3, which transfers data faster and can be suitable for AI-based machines.

The main question facing AMD is whether technology companies that have already adapted to Nvidia's processors will invest the time and money to add more doubt.

Nvidia CEO Jensen Huang. The move by AMD and the tech giants is a threat for the company, Photo: AFP

The company said at an investor event that it has improved its software package called ROCm to compete with Nvidia's CUDA platform, which is an industry standard and one of the reasons why AI developers have so far preferred the company's chips.

It's all about money

As mentioned, price is one of the most significant factors in AMD's chip game against Nvidia. While AMD hasn't disclosed the pricing of the MI300X, given that one Nvidia chip can cost as much as $40,<>, it's clear to everyone that AMD's chip will have to be significantly cheaper to buy and operate in order for customers to be persuaded to switch to it.

OpenAI founder Sam Altman and Microsoft CEO. Looking to lower costs, Photo: AFP

At the same time, it seems that the price has already been communicated to Meta and Microsoft and supplied them, since the two companies, which were the largest buyers of Nvidia's H100 GPU by the way, announced that they would switch to using the new chip.

According to AMD, the total market for AI processors could climb to $400 billion over the next four years, doubling the company's previous forecast and showing how high expectations are and how desirable advanced AI chips have become, as well as why the company is now focusing its attention on the field.

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Source: israelhayom

All tech articles on 2023-12-10

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