AMD is set to reduce 4% of its workforce to prioritize the expansion of AI chips and compete with Nvidia
Upon closer examination, the Q3 results revealed both positive aspects and difficulties: while overall revenue surged by 18% to $6.8 billion, revenue from gaming chips fell by 69% year-over-year, and sales of embedded chips declined by 25%.
Upon closer examination, the Q3 results revealed both positive aspects and difficulties: while overall revenue surged by 18% to $6.8 billion, revenue from gaming chips fell by 69% year-over-year, and sales of embedded chips declined by 25%.
During the recent earnings call, AMD’s CEO Lisa Su emphasized the significance of the data center and AI sectors for the company’s future, anticipating a 98% growth in this area by 2024.
Su credited the recent revenue growth to orders from major clients such as Microsoft and Meta, the latter of which has now integrated AMD’s MI300X GPUs for their internal operations.
Unlike AMD’s more focused staff reductions, Intel has recently made significantly larger workforce cuts, eliminating around 15,000 positions as part of its restructuring efforts.
Driving Growth in Data Centers and AI
AMD has seen rapid growth through initiatives like optimizing Instinct GPUs for AI tasks and meeting the reliability standards for data centers, resulting in a $500 million rise in the company’s 2024 Instinct sales projections.
Key clients like Microsoft and Meta have also expanded their usage of MI300X GPUs, with Microsoft incorporating them for Copilot services and Meta utilizing them for Llama models. Major public cloud providers including Microsoft and Oracle Cloud, as well as various AI startups, have also adopted MI300X instances.
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