The American multinational technology company Advanced Micro Devices (AMD), which is mulling an expansion of its artificial intelligence (AI) business, on Tuesday said that the firm expects the market for the company’s data centre chips to grow to $1 trillion by 2030.
Speaking at the Nasdaq in New York, Su opined that AI will help in driving the growth to the trillion-dollar figure. This is one of the major expectations by the firm, which includes AMD’s central processing units and networking chips. Su mentioned that the data centre is the largest growth opportunity and AMD has positioned itself ‘very well’ in that market.
Business Expansion
With rival Nvidia gobbles up market share for data centre chips, Advanced Micro Devices is trying to expand its AI business. Though it has been successful in the CPU business, its market share in the AI-driven chips is yet to boom, compared to Intel.
In the path to grow its business, AMD has recently acquired a batch of startups that focus on building software needed to run AI applications. These include the server builder ZT Systems and MK1. Apart from this, AMD has also built an M&A machine.
Among others, the chip designer is all set to launch its next-generation MI400 series of AI chips in 2026. It is expected that the chips will have multiple variants designed for generative AI. Not only this, the firm is mulling over launching a complete server rack, which would be similar to Nvidia’s GB200 NVL72.
Overall Growth Vision
According to Su, AMD’s overall revenue growth may expand to around 35 per cent per year over the next three to five years. She cited the firm’s AI data centre business for her growth vision.
The chipmaker’s CEO was optimistic about achieving “double-digit” share in the data centre AI chip market in the next three to five years.
AMD in October announced a partnership with OpenAI, where it would sell the AI startup billions of dollars in its Instinct AI chips over multiple years. In return, OpenAI may take a 10 per cent stake in the chipmaker. Also, OpenAI is helping the chipmaker in setting up its next-generation systems based around its Instinct MI400X AI chips. These are expected to be shipped from next year.
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