AMD Data Center Revenue Doubles as AI Demand Drives Growth
The short answer
AMD's data center business posted $6.7 billion in quarterly revenue, up 107 percent year-over-year, signaling continued competition in AI chip supply. Growing competition among AI chip makers could eventually translate to more pricing options for AI compute resources.
- AMD
- AI chips
- data center
- cloud computing
- hardware
What happened
AMD reported that its data center revenue reached $6.7 billion in its latest quarter, more than doubling from $3.2 billion in the same period last year. The figure represents a sequential increase from $5.8 billion in the previous quarter. AMD CEO Lisa Su attributed the growth to heightened demand for AI computing capacity during an earnings call. The company's data center segment has expanded as businesses seek alternatives to Nvidia's AI chips for training and running AI models.
The gaming portion of AMD's business took a backseat to data center performance, reflecting the shift in demand toward AI-related hardware. The company's AI chip portfolio has been gaining traction with cloud providers and enterprises looking to deploy AI workloads.
What it means for your business
Growing competition among AI chip makers could eventually translate to more pricing options for AI compute resources. As AMD scales its AI hardware offerings, smaller providers may gain access to competitive alternatives for running AI workloads, potentially lowering costs for businesses that rely on cloud-based AI services.
Source: The Verge