AMD's CEO has spoken out against people who fear 'AI spending', claiming that investments into the technology would eventually lead to 'worthy' innovations.
AMD's CEO Has Encouraged the 'Aggressive' AI Spending, Saying It Will Lead to Technological Progress
AMD held its Financial Analyst Day yesterday, during which the firm announced several optimistic developments surrounding AI, consumer products, and revenue. The event was held after a three-year hiatus, providing an overview of the company's roadmap over a longer period. It showed us where we could expect Team Red to be moving ahead into the future. AMD's CEO Lisa Su appeared at CNBC's Squawk Box, and when asked about the 'skepticism' with AI spending, and how companies like OpenAI are claimed to be under losses, here's what she had to say:
I don't think it's a big gamble I think it's the right gamble and the way I would say it is we can also definitely see that more computing and more investments equate to a faster pace of innovation. I think that's definitely there.
It appears that AMD's CEO is in favor of investments in the AI industry, which is why the company has revised its total accelerator addressable market (TAM) to $1 trillion by 2030. Team Red anticipates capturing a significant portion of this revenue figure, which is why the company is optimistic about its future in the AI industry. By essentially calling AI spending a 'gamble', CEO Lisa Su implies that innovations do come with a cost, likely in the form of operating losses and rising electricity consumption from DC build-out, but this shouldn't constrain the innovation of the segment.
While we won't comment on the concerns with AI spending, it is evident that AMD looks a lot more aggressive with its AI strategy compared to where the firm was a few years ago, and when asked about whether Team Red has an opportunity to compete in a market dominated by NVIDIA, here's what CEO Lisa Su had to say:
I would say once again this is an amazing market with tremendous growth and whenever you have a market that is let's call it early in the cycle and also on a steep growth curve it really favors innovation and it favors partnership you know from our standpoint technology roadmap we're super excited about the new products.
AMD plans to hit NVIDIA 'hard' with its upcoming Instinct AI GPUs, such as the MI355 and the MI450 series, and along with that, the firm plans to scale up its rack offerings tremendously, positioning its portfolio as a direct counterpart to Team Green.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
Follow Wccftech on Google to get more of our news coverage in your feeds.
