Thursday, November 2nd 2023
AMD Instinct MI300X Could Become Company's Fastest Product to Rake $1 Billion in Sales
AMD in its post Q3-2023 financial results call stated that it expects the Instinct MI300X accelerator to be the fastest product in AMD history to rake in $1 billion in sales. This would be the time it took for a product in its lifecycle to register $1 billion in sales. With the MI300 series, the company hopes to finally break into the AI-driven HPC accelerator market that's dominated by NVIDIA, and at scale. This growth is attributable to two distinct factors. The first of which is that NVIDIA is supply bottlenecked, and customers and looking for alternatives, and finally found a suitable one with the MI300 series; and the second is that with the MI300 series, AMD has finally ironed out the software ecosystem backing the hardware that looks incredible on paper.
It's also worth noting here, that AMD is rumored to be sacrificing its market presence in the enthusiast-class gaming GPU segment with its next-generation, with the goal of maximizing its foundry allocation for HPC accelerators such as the MI300X. HPC accelerators are a significantly higher margin class of products than gaming GPUs such as the Radeon RX 7900 XTX. The RX 7900 XTX and its refresh under the RX 7950 series, are not expected to have a successor in the RDNA4 generation. "We now expect datacenter GPU revenue to be approximately $400 million in the fourth quarter and exceed $2 billion in 2024 as revenue ramps throughout the year," said Dr. Lisa Su, CEO AMD, at the company's earnings call with analysts and investors. "This growth would make MI300 the fastest product to ramp to $1 billion in sales in AMD history."
Sources:
Tom's Hardware, The Motley Fool
It's also worth noting here, that AMD is rumored to be sacrificing its market presence in the enthusiast-class gaming GPU segment with its next-generation, with the goal of maximizing its foundry allocation for HPC accelerators such as the MI300X. HPC accelerators are a significantly higher margin class of products than gaming GPUs such as the Radeon RX 7900 XTX. The RX 7900 XTX and its refresh under the RX 7950 series, are not expected to have a successor in the RDNA4 generation. "We now expect datacenter GPU revenue to be approximately $400 million in the fourth quarter and exceed $2 billion in 2024 as revenue ramps throughout the year," said Dr. Lisa Su, CEO AMD, at the company's earnings call with analysts and investors. "This growth would make MI300 the fastest product to ramp to $1 billion in sales in AMD history."
31 Comments on AMD Instinct MI300X Could Become Company's Fastest Product to Rake $1 Billion in Sales
CUDA is really entrenched in Universities especially in the US, it is even part of the curriculum in some Unis for their undergrads/grads. These future professionals once graduated they take that CUDA mindset to their workplaces. If at all they get into steering roles they will push Nvidia ecosystem. Then when those people hire the next group of engineers, these seniors will be looking for CUDA experience. That's not brand loyality its just prefefnece for familarity.
AMD wont make much head way even with relatively cheaper hardware when their University drives are next to nothing. Professors who asked their postdocs to go with AMD did so only becuase the grants were limited for their work.
Then there is an imminent reality this AI bubble will be burst by startups and other companies putting out specialized ASICs that handle training and inferencing much quicker and far more efficientlty. Inferenecing on analog designs is already a thing and vastly more efficient.
In our country you could jokingly say you reached $1 billion in sales three times - first time, last time and the only time!
Nothing more than a normal business day in business world ...
I forgot gpu's are on a 5 year cycle now, whether it be crypto, AI, and next up WW3 supply chain issues. Technically WW3 is already here, its just in the form of trade wars and Cold War style skirmishes.
Also the CUDA meme is irrelevant. HIP is basically a slightly higher level but functionally identical copy of CUDA. ROCm is also not that different. And besides, a lot of the workload will be using nothing else than PyTorch.
I'm preparing for a repeat of the 2019-2021 GPU crisis.
If it wasn't going to happen, why are both AMD and Nvidia switching their GPU focus to AI features, why are consumer products being sidelined to use their premium TSMC allocation on AI compute GPGPUs for the datacenter?
End result is the same: not enough gaming GPU for you and what's trickled will be overpriced at whatever the hell la-la magic pricing they want.
It's the same as the crypto craze and pandemic sleaze but worse as they're now issues dictated by the manufacturer themselves and their bottomless greed.
i hope this stupid AI bubble bursts soon.
Seriously with this nonsense?
Even with our "prices have gone down" GPU are still savagely overpriced, if you overprice something 300%, and then lower it to 250%, yes prices went down but they're still overpriced.
It's also what they have said, allocation will go to profiteering, not gamer gpus
I'll admit, I am not an investor and know little of AMD, but I'd bet they have had several products reach 1 billon in sales over the life of the product. If I had to bet I'd say the 580 sold 1 billon. That was a hugely popular card for gaming and mining and it sold for a long run.
Here's a hint...they don't. They want what does the job that they need done and CUDA clearly has nothing to do with these purposes, as we've seen by the part selection made over the past few years. If EPYC and Instinct do the job they need done better than the offerings from Intel and/or nVidia, they're going to use them. This is the US government we're talking about here, you know, the one with the unlimited budget (unless it comes to giving their citizens universal healthcare). If nVidia hardware was better (as you seem to be trying so hard to claim), then that's what they'd be using. Oh, except that they're not...I don't know what to say to this because (other than what universities use being completely irrelevant) the very existence of the top-3 supercomputers, Frontier, Fugaku and LUMI proves your statement to be 100% false. None of these supercomputers use nVidia hardware for anything. The Kubaku is the odd one out because it uses Fujitsu-designed ARM8.2 cores and doesn't require separate GPU cores. The other two have been extremely successful in their roles with EPYC and Instinct for the USA and Finland. After their experience with Frontier, if there were any drawbacks to using Radeon Instinct GPUs, there's not a chance that the US government would be investing even more money into an even more expensive and powerful Cray like El Capitan. They can spend limitless amounts of money on whatever they want which means that if they chose Radeon Instinct, then it is either the best for the task or at the very least, nVidia would be no better.What does that have to do with the M1200X being the fastest AMD product to reach $1,000,000,000? You must be a real fanboy to bring up things that have nothing to do with the article in your attempt to say "But, but, but, CUDAAAA!!!".