The Nvidia rival AMD is positioning itself for what it believes will be an AI hardware cycle to the tune of $1 trillion.
In a new CNBC interview, AMD CEO Lisa Su reiterates her total addressable market estimate for AI hardware, noting that tech companies need more than one type of chip to power their compute needs.
“I would take a step back and say, look, we are sizing this AI accelerator market at a trillion dollars over the next five years. It’s a huge, huge market. And we’re actually at an inflection point where I’m a big believer in there’s no one-size-fits-all. Frankly, you need a lot of different types of compute.”
She says AMD is primed to capture the insatiable demand for chips due to its breadth across hardware layers.
“AMD has all of the pieces. So we have CPUs, GPUs. We have the system infrastructure.”
Turning to Meta, Su says its latest agreement with the social media giant is a bet on who will be the winners of the AI race.
“And what we want to do is place bets on who we think are going to be the winners in AI innovation going forward. So this is about a strategic partnership. I think everything that we do when we look at the structures of this is to ensure that it’s a win-win. So everything is performance-based.
There is a tremendous amount of revenue coming into AMD. Every gigawatt of compute is double-digit billions of revenue to us.”
Under the new agreement, AMD and Meta will deploy up to six gigawatts of AI infrastructure powered by multiple generations of AMD Instinct GPUs. The first rollout will feature a custom Instinct GPU based on AMD’s MI450 architecture, optimized for Meta’s workloads at gigawatt scale.
The deal expands an existing partnership and aligns silicon, systems and software roadmaps between the two companies as hyperscalers ramp up AI data center buildouts.
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