Benoit Tessier/File Photo/ReutersAMD’s latest advanced chip could peel customers away from industry leader Nvidia and shake up the overall AI landscape. The unveiling of the MI400, the company’s most advanced model, drew some of the biggest companies to San Jose to heap praise on AMD CEO Lisa Su, who has made fast progress in a field dominated by Nvidia: Massive, industrial-scale compute clusters that can train and run the world’s most powerful AI models. “When you first started telling me about the specs, I was like, there’s no way. That just sounds totally crazy,” said Sam Altman, co-founder and CEO of OpenAI, last week during an AMD conference. But it isn’t just the chip that excites people like Altman. It’s everything else AMD has done to make it perform better as a cohesive system. Gone are the days when chip companies were judged simply by the number of transistors they could fit on a piece of silicon. Massive increases in compute power today are the product of a wide array of engineering breakthroughs, some that require microscopes to see and others that are better observed from the sky. It took a while for the market to respond to AMD’s announcements last week, but its stock shot up Monday as analysts processed the implications of the event. For decades, the tech industry had Moore’s Law, the promise that the number of transistors on a chip would double every couple of years. It was dependable and allowed companies like Apple to plan product road maps years in advance. Today’s compute breakthroughs come more from the ability to connect unfathomably large numbers of chips together — an effort that isn’t governed by any “law.” This is why AMD is selling its MI400 as a complete system, with all of the data center components pre-built in a single server rack called Helios. Nvidia is also moving in this direction, which means pushing the boundaries of chip architecture and everything that is built around them. So far, Nvidia and now AMD have shown an ability to innovate in this post-Moore’s Law era. The question, though, is for how long. Companies are packing so much hardware into server racks that they are straining the concrete floors that support them and the energy grids that power them. Mark Papermaster, AMD’s CTO and a veteran of the chip industry, told Semafor the new challenge does require new brainpower. “We’re changing the whole makeup of the company,” Papermaster said. “If you look at our acquisitions, they’ve been broadening our skill base, largely acquiring new software skills and new system skills to allow us to be more effective and move more quickly.” |