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As the artificial intelligence race intensifies, AMD is placing its bet on AI-powered PCs to compete with rivals Nvidia and Intel.

Advanced Micro Devices (AMD), a prominent U.S. chip giant, is strategically entering the competitive field of AI-powered personal computers (AI PCs) to contend with industry leaders such as Nvidia and Intel in the rapidly evolving landscape of artificial intelligence.

In an exclusive interview with CNBC on Thursday, Victor Peng, the President of AMD, expressed confidence in the expanding market for AI PCs, foreseeing increased adoption in the latter part of the year. AI PCs refer to personal computers equipped with processors specifically designed for AI tasks, such as real-time language translation.

A December report from tech research firm Canalys indicated a surge in generative AI, expecting it to drive PC sales as consumers actively seek devices with integrated AI features. The report forecasts that 60% of PCs shipped in 2027 will possess AI capabilities.

The launch of ChatGPT in November 2022, a chatbot known for generating human-like responses, sparked a significant interest in AI applications.

During a November fourth-quarter earnings call, Enrique Lores, President and CEO of HP, expressed excitement about the transformative impact of AI PCs on the overall PC category, emphasizing that widespread adoption may take some time.

Initially, AI-powered devices are likely to target specific segments within the enterprise PC market. However, as more use cases emerge and costs decrease, the deployment of AI PCs could extend to a broader market, according to research firm International Data Corporation (IDC).

IDC anticipates that the integration of AI capabilities into PCs will act as a catalyst for upgrades, with these AI PCs expected to hit the market this year.

In January, AMD announced the Ryzen 8000G Series desktop processors, promising robust power and performance for demanding tasks, including gaming and content creation.

In the competitive landscape, AMD competes with industry giants Nvidia and Intel in the realm of graphics processing units (GPUs), which are crucial for AI and high-performance computing.

Nvidia currently dominates the GPU market for AI applications, powering prominent models like OpenAI’s ChatGPT. In January, Nvidia introduced new GPUs designed for generative AI applications on PCs, expanding its presence in laptops from companies such as Acer, Dell, and Lenovo.

Intel, in December, launched Core Ultra chips designed to accelerate AI programs. These processors are set to power over 230 of the world’s first AI PCs from companies including Acer, ASUS, Dell, HP, and Lenovo.

Victor Peng emphasized the ongoing significance of AI, stating, “AI is going to continue to be very big in this year and beyond. I mean, as large as the opportunities already are, we’re still in the early innings of AI.”

In December, AMD introduced the Instinct MI300X chips, designed for large language model training, directly competing with Nvidia’s H100 chips.

During the fourth-quarter earnings call, Jean Hu, AMD’s Executive Vice President, highlighted the company’s achievements, citing year-over-year revenue growth in data center and embedded segments. The launch of the AMD Instinct MI300 GPUs positions the company for a robust product ramp in 2024.

The competition for AI technology dominance remains dynamic, with key players striving to capture market share and advance their capabilities in various sectors, including GPUs and server applications.

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