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- In its latest financial report, AMD addresses the partnership with Intel and Nvidia.
- The company states that it will face increased competition and pricing pressure in the future.
- AMD has also secured a deal with OpenAI, and the future of the AI chip market seems unpredictable for now.
AMD is rising immensely in the consumer market and data centres, especially with the recent successful launches of the RDNA 4 GPU and Zen 5 CPU releases. Team Red also saw record-breaking revenue of $9.2 billion in the last quarter and is quite optimistic about its future.
However, the path ahead won’t be smooth sailing for them as they face rising competition from Intel and Nvidia’s partnership. The RTX GPU manufacturer has invested $5 billion into Team Blue to develop multiple generations of custom chips for both data centres and desktop PCs.
AMD has acknowledged this partnership and, in its latest financial report, addressed the future, stating that it will face ‘rising competition and pricing pressure.’
Why it matters: While Intel has been lagging in competition for some time, Nvidia’s backing could potentially give it the push it needs, especially at a time when AMD is experiencing a surge in growth. The competition ahead looks unpredictable.
According to a detailed explanation in the report, AMD explained how Intel is threatening its market presence.
“Intel uses its microprocessor market position to price aggressively and target our customers, reducing our unit sales and average selling prices, which adversely affects our business.”
On the other hand, Team Red also addressed competition against Nvidia.
“NVIDIA leverages its data-center GPU dominance, financial resources, and software ecosystem to promote its systems—impacting customers who do business with us.”
Still, though, AMD isn’t going down that easily. OpenAI has also approached the company to purchase AI chips that could revolutionise the market.
On the other hand, Microsoft has reportedly broken Nvidia’s CUDA dominance and is working with AMD to chart the path forward.
What are your thoughts on this story? Who do you think will emerge victorious in this battle? Please let us know in the comments below or at the official Tech4Gamers Forums.
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[Staff Writer]
Shaheer is currently pursuing a Business degree while also working as a part-time Content Writer. With his deep passion for both writing and video games, he has seamlessly transitioned into a role as a Journalist. Over the past two years, Shaheer has contributed as a freelancer to various websites and landed positions on acclaimed platforms like Gamerant. Currently, his role at Tech4gamers is as a Features Writer, but he also covers News occasionally. Shaheer’s favorite gaming franchises are Assassin’s Creed and the God of War series.
Get In Touch: shaheerzahid03@gmail.com
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