To effectively train and deploy generative AI, large language models, or agentic AI, it's crucial to build parallel computing infrastructure that offers the best performance to meet the demands of AI/ML workloads but also offers the kind of flexibility that the future of AI demands. A key aspect for consideration is the ability to scale-out the intra-node GPU-GPU communication network in the data center.

At AMD, we believe in preserving customer choice by providing customers with easily scalable solutions that work across an open ecosystem, reducing total cost of ownership—without sacrificing performance. Remaining true to that ethos, last October, we announced the upcoming release of the new AMD Pensando Pollara 400 AI NIC. Today we're excited to share the industry's first fully programmable AI NIC designed with developing Ultra Ethernet Consortium (UEC) standards and features is available for purchase now. So, how has the Pensando Pollara 400 AI NIC been uniquely designed to accelerate AI workloads at scale?

Today, at VMware Explore 2023 Las Vegas, AMD continued to showcase its proven performance and growing adoption of AMD EPYC CPUs, AMD Pensando data processing units (DPUs) and adaptive computing products as ideal solutions for the most efficient and innovative virtualized environments. For instance, a system powered by a 4th Gen AMD EPYC 9654 CPUs and a Pensando DPU, delivers approximately 3.3x the Redis application performance and 1.75x the aggregate network throughput when compared to a 4th Gen EPYC system with standard NICs. Additionally, servers with 2P 4th Gen EPYC 9654 CPUs alone can enable using up to 35% fewer servers in an environment running 2000 virtual machines (VMs) compared to 2P Intel Xeon 8490H based servers.

"AMD is helping enterprise customers fully realize the benefits of their virtualized data centers with the latest generation EPYC CPUs and Pensando DPUs," said Forrest Norrod, executive vice president and general manager, Data Center Solutions Business Group, AMD. "Consolidation and modernization enable businesses to increase server utilization and efficiency while delivering impressive performance for critical enterprise workloads. Our ongoing collaboration with VMware enables customers to get more efficient and agile to reach their digital transformation goals."

Today, at the "Data Center and AI Technology Premiere," AMD announced the products, strategy and ecosystem partners that will shape the future of computing, highlighting the next phase of data center innovation. AMD was joined on stage with executives from Amazon Web Services (AWS), Citadel, Hugging Face, Meta, Microsoft Azure and PyTorch to showcase the technological partnerships with industry leaders to bring the next generation of high performance CPU and AI accelerator solutions to market.

"Today, we took another significant step forward in our data center strategy as we expanded our 4th Gen EPYC processor family with new leadership solutions for cloud and technical computing workloads and announced new public instances and internal deployments with the largest cloud providers," said AMD Chair and CEO Dr. Lisa Su. "AI is the defining technology shaping the next generation of computing and the largest strategic growth opportunity for AMD. We are laser focused on accelerating the deployment of AMD AI platforms at scale in the data center, led by the launch of our Instinct MI300 accelerators planned for later this year and the growing ecosystem of enterprise-ready AI software optimized for our hardware."

According to the latest TrendForce statistics, revenue of the top ten global IC design houses reached US$39.56 billion in 2Q22, growing 32% YoY. Growth was primarily driven by demand for data centers, networking, IoT, and high-end product portfolios. AMD achieved synergy through mergers and acquisitions. In addition to climbing to third place, the company also posted the highest annual revenue growth rate in 2Q22 at 70%.

Qualcomm continues in the No. 1 position worldwide, exhibiting growth in the mobile phone, RF front-end, automotive, and IoT sectors. Sales of mid/low-end mobile phone APs were weak but demand for high-end mobile phone APs was relatively stable. Company revenue reached US$9.38 billion, or 45% growth YoY. NVIDIA benefitted from expanded application of GPUs in data centers to expand this product category's revenue share past the 50% mark to 53.5%, making up for the 13% YoY slump in its game application business, bringing total revenue to US$7.09 billion, though annual growth rate slowed to 21%. AMD reorganized its business after the addition of Xilinx and Pensando. The company's embedded division revenue increased by 2,228% YoY. In addition, its data center department also made a considerable contribution. AMD posted revenue of US$6.55 billion, achieving 70% growth YoY, highest amongst the top ten. Broadcom's sales performance in semiconductor solutions remained solid and demand for cloud services, data centers, and networking is quite strong. The company's purchase order backlog is still increasing with 2Q22 revenue reaching US$6.49 billion, an annual growth rate of 31%.

AMD announced that the AMD Pensando Distributed Services Card, powered by the industry's most advanced data processing unit (DPU)1, will be one of the first DPU solutions to support VMware vSphere 8 available from leading server vendors including Dell Technologies, HPE and Lenovo.

As data center applications grow in scale and sophistication, the resulting workloads increase the demand on infrastructure services as well as crucial CPU resources. VMware vSphere 8 aims to reimagine IT infrastructure as a composable architecture with a goal of offloading infrastructure workloads such as networking, storage, and security from the CPU by leveraging the new vSphere Distributed Services Engine, freeing up valuable CPU cycles to be used for business functions and revenue generating applications.

AMD today announced a definitive agreement to acquire Pensando for approximately $1.9 billion before working capital and other adjustments. Pensando's distributed services platform includes a high-performance, fully programmable packet processor and comprehensive software stack that accelerate networking, security, storage and other services for cloud, enterprise and edge applications.

"To build a leading-edge data center with the best performance, security, flexibility and lowest total cost of ownership requires a wide range of compute engines," said Dr. Lisa Su, AMD chair and CEO. "All major cloud and OEM customers have adopted EPYC processors to power their data center offerings. Today, with our acquisition of Pensando, we add a leading distributed services platform to our high-performance CPU, GPU, FPGA and adaptive SoC portfolio. The Pensando team brings world-class expertise and a proven track record of innovation at the chip, software and platform level which expands our ability to offer leadership solutions for our cloud, enterprise and edge customers."