Having been relegated to a distant second by rival
The dynamics in the AI market are currently lopsided, with Nvidia controlling 80% of the global market for chips best suited to run AI applications; and while Team Green's hardware may be great, it is not without its fair share of critics, who cite the overly high price tag of Nvidia's offerings as a potential barrier to expansion.
As an example, OpenAI, which powers its generative AI tool using Nvidia's GPUs, burns billions of dollars to run ChatGPT, and if the number of queries to the chatbot grow even to a tenth of the scale of Google search, the Microsoft-backed company would require roughly $48.1 billion worth of GPUs initially and about $16 billion worth of chips a year to keep operational.
That's a tall order, and AMD knows it. That's why, the Santa Clara, Calif.-based semiconductor company is looking to compete with Nvidia by developing AI hardware and software that is cheaper and runs as well as the competition. This strategy would be quite similar to the one Team Red's been using under CEO Lisa Su to capture the market in the consumer PC space, blindsiding the likes of Intel and Nvidia by offering powerful graphic cards and processors at prices that were more easy to swallow for consumers.
While the company may be some ways off from achieving the
AMD isn't the only tech company looking to further its hold in the AI industry through acquisitions, though.
So, more acquisitions in the sector? We'll see.
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The Washington Post.
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— Sheharyar Khan, Editor, Business Tech @ HackerNoon
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