In a ongoing fight to break free from Nvidia's hold of the AI hardware market, Meta and Microsoft announced the intention to purchase AMD's new AI chip once it comes out.
The declaration follows after OpenAI said that it will be using the Instinct MI300X for its AI services as an alternative to the much pricier Nvidia chips.
AMD CEO Lisa Su revealed that the company revealed that the two companies has already signed a deal with AMD during the unveiling of the MI300X chip on Wednesday.
AMD MI300X Vs Nvidia H100
Supposedly similar to Nvidia's main AI GPU, the H100, the chip features a 192GB of cutting-edge, high-performance HBM3 memory storage to fit larger AI models in its systems.
"When you ask a model something, you'd like it to come back faster, especially as responses get more complicated," said Su.
The company is confident that more companies will soon move towards the MI300X even if it "takes work to adopt AMD."
AMD expects its market shares to jump as high as "$400 billion-plus in 2027." Nvidia reported over $14 billion earning in data center sales for the last quarter alone due to in-demand AI GPUs.
Also Read: NVIDIA Revenues Soar Beyond Expectations Amid AI Chip Boom
Companies Move Away from Nvidia AI Chips
The Meta-Microsoft deal with AMD is only the latest turn of events as more companies find alternatives from Nvidia's more expensive AI hardware.
Although no actual price for the MI300X was given, AMD assured that it will be much lower than Nvidia products. A single AI chip from Nvidia can cost up to $40,000.
Other companies like OpenAI have already vowed to support one of AMD's AI chips, Triton, for AI research on accessing GPU features.
Since the announcement, AMD's shares dropped only 1.3% on Wednesday, slightly lower than the 2.3% slump Nvidia suffered.
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