The news: Amazon Web Services (AWS) is weighing the possibility of using Advanced Micro Devices's (AMD) new AI chips in its cloud services, according to an AWS executive. What happened: On Tuesday AMD, unveiled the MI300x, its most sophisticated GPU yet, which will serve as the company's flagship product for high-performance AI tasks, competing with Nvidia's offerings. AWS, the world's largest cloud computing provider, is considering partnering with AMD as a potential supplier of the chips, though no final decision has been made yet. Why it matters: Such a contract could elevate AMD to a similar echelon as Nvidia, which dominates the AI computing market with 80%-95% share, as reported by analysts. AWS has declined the chance to collaborate with Nvidia on the DGX Cloud offering, its all-inclusive AI supercomputer in the cloud. AMD's AI processors, which could power AI services similar to ChatGPT, could offer another option. Quotable: "We're betting that a lot of people are going to want choice, and they're going to want the ability to customize what they need in their data center," AMD Chief Executive Lisa Su told Reuters. What the numbers show: The market for powerful AI data processors is projected to see substantial growth due to high demand. In 2020, the revenue generated from AI processors for cloud and data centers was around $4B, a figure that could surge to $38B by 2026.
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