AMD Just Shattered NVidia’s AI Dominance

Last week, AMD announced a deal with OpenAI that has profound consequences. SemiAccurate is not talking about the sales, stock gifts, or anything obvious, they just broke Nvidia’s AI monopoly.

For those living under a rock, AMD announced OpenAI would be building a huge datcenter filled with AMD’s MI450 AI racks. On the surface this looks like another mega-deal, a rather questionable one given that roughly 10% of the company is now owned by OpenAI. You need to sell a lot of MI450s to make up for that $35B or so, as of this writing, offering.

Below the surface it is brilliant because AMD just changed the AI game for good and destroyed Nvidia’s one key advantage in the market. Allow us to explain the consequences and why the AI market will never be the same again.

Note: The following is analysis for professional level subscribers only.

Disclosures: Charlie Demerjian and Stone Arch Networking Services, Inc. have no consulting relationships, investment relationships, or hold any investment positions with any of the companies mentioned in this report.

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Charlie Demerjian is the founder of Stone Arch Networking Services and SemiAccurate.com. SemiAccurate.com is a technology news site; addressing hardware design, software selection, customization, securing and maintenance, with over one million views per month. He is a technologist and analyst specializing in semiconductors, system and network architecture. As head writer of SemiAccurate.com, he regularly advises writers, analysts, and industry executives on technical matters and long lead industry trends. Charlie is also available through Guidepoint and Mosaic. FullyAccurate