AMD has unveiled its next-generation artificial intelligence (AI) chip, the Instinct MI400 series, signaling a direct challenge to Nvidia’s dominance in the AI chip market.
According to CNBC on Thursday, at the Advancing AI 2025 in San Jose, California, AMD showcased the core capabilities of its Instinct MI400 AI accelerator and outlined its future AI infrastructure strategy.
AMD revealed that the Instinct MI400 is built on a novel server rack system called Helios, capable of harnessing thousands of chips to function as a single, massive computing engine.
Lisa Su, AMD’s CEO, described Helios as a rack that operates like one enormous computing engine, emphasizing its competitive edge against Nvidia’s Vera Rubin system.
The MI400 chip is poised to go head-to-head with Nvidia’s Blackwell chip. Notably, OpenAI has plans to incorporate AMD’s chips into its operations. AMD claims that its new chip offers reduced power consumption compared to Nvidia’s products and provides cost efficiency through an aggressive pricing strategy.
AMD particularly emphasized that the MI355X and MI400 series outperform Nvidia in terms of power efficiency and cost-effectiveness. The Instinct MI355X, AMD’s current cutting-edge chip supplied to cloud providers, boasts seven times the computational power of its predecessor and excels in AI model inference processing.
Sam Altman, CEO of OpenAI, who attended the event, expressed his enthusiasm about AMD’s technology, stating that he was astounded by their innovation when he first heard the specifications. It’s understood that OpenAI has been providing feedback on AMD’s chips.
AMD projects the AI semiconductor market to surpass $500 billion by 2028. The company has declared its intention to disrupt the current market landscape, where Nvidia holds a market share of over 90%.
