AMD expects first deliveries by year‑end

Advanced Micro Devices (AMD) has confirmed that its first shipments of next‑generation AI GPUs will start by the end of 2025, as the company gets set to re-enter the Chinese market by deploying top-tier cloud infrastructure.

Lisa Su, the CEO of AMD, revealed that they were receiving chips for their operation from Taiwan Semiconductor Manufacturing Co. (TSMC).

However, she stated that when these chips are produced at TSMC’s US facilities, they become more expensive than those produced at its other facilities.

During an Artificial Intelligence event held in Washington, the CEO broke this down, pointing out that the same chips sold in Taiwan facilities are now sold between 5% and 20% more in US facilities.

Lisa Su acknowledges the booming demand for AI chips in the tech sector 

The AMD CEO attended a crucial event that the All-In Podcast team hosted earlier. The event also held a consortium of tech executives and lawmakers, popularly called the Hill and Valley Forum. 

Su acknowledged a booming demand for AI chips in the tech sector during the event. She further pointed out prominent figures such as Sam Altman, the CEO of OpenAI, and Elon Musk, a founder of artificial intelligence startup xAI, who made significant investments in the AI sector.

Notably, AI accelerators are essential in this AI race for tech companies to solidify their position as global leaders in AI. They produce useful chips in developing and operating different AI models. 

Consequently, AMD and  Nvidia Corp. compete for these advantages encompassing AI accelerators in the markets.

Su commented on the accelerators’ market conditions. Based on her anticipation, following its impressive advantages and growing adoption across tech companies, its market will exceed $500 billion in just a few years. 

“You can determine if we have done well by looking at what we accomplished in five years,” she added.

Huawei eyes the Middle East and Southeast Asia for its AI chips expansion 

In the era of rapidly growing demand for AI chips in the tech sector, Huawei Technologies has devised a strategy to overtake Nvidia, a US-based chip maker, in the market. The company is extending its markets to the Middle East and Southeast Asia region with minor quantities of AI chips.

The Chinese tech company has taken an extra step to negotiate prices with its potential clients in the United Arab Emirates (UAE), Saudi Arabia, and Thailand concerning its AI chips, Ascend 910B, people familiar with the situation who wished to remain anonymous due to the confidential nature of the situation said.

Nonetheless, a deal has not yet been struck, as a situation has developed. According to reliable sources, the UAE has demonstrated zero interest in Huawei’s AI chip offer, while Thailand’s agreement status remains unclear.

This did not stop the tech company from achieving its goal of becoming a leader in AI. Therefore, it had to develop another approach. Huawei decided to entice customers with its offer of remote accessibility to CloudMatrix 384, one of China’s AI systems that uses the company’s advanced chips in its operations. However, their limited supplies hinder them from being exported.

The primary factor behind Huawei’s growing interest in the Middle East is its surging AI chips market. Apart from Huawei, Nvidia is also attracted by this factor.

Neither Thailand’s nor Saudi’s government spokesperson replied to a comment request.

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