Microsoft might seal a deal with AMD for the Instinct Series Accelerators

AMD sells their Instinct MI300 Series Accelerators for a lower price to Microsoft. So, it might result in another long time collaboration between the companies. Thus, we can also expect for a new partnership between Xbox and AMD as they are still deciding who will bring the next gen console.

On the other hand, Microsoft could also work with Nvidia. After all, they have the H100 Tensor Core GPU that’s said to be one of the most performant GPUs for the enterprise AI. However, they are far more expensive.

Will AMD beat Nvidia in AI?

It’s hard to know if AMD will beat Nvidia in AI. After all, investing in the CUDA stack from Nvidia is a good idea because a lot of AI software and hardware have optimizations for it. The only downside is that the company keeps the hardware for premium buyers. Thus, they might not drop their price.

On the other hand, AMD is trying to seize a part of the market and bring more customers for the CDNA 3-based Instinct MI300 series. In addition, compared to Nvidia, AMD supplies their buyers faster because they have more resources available.

The final decision could be choosing between quality and quantity. However, Meta, OpenAI and Microsoft will likely invest in both AMD and Nvidia. After all, the companies desire a more diverse market to reduce overall costs and waiting times.

In a nutshell, the strategy AMD adapted might suit the customer’s needs, which is now looking to expand towards AI. Thus, AMD has the potential to size a larger part of the market with the Instinct series accelerators.

Also, Nvidia could lose if the situation becomes a race against time because they don’t have enough supply. Moreover, the partnership with Microsoft could lead to more sales for AMD, especially given the pricing.

What do you think? Is it enough for AMD to sell faster and cheaper to win over the market? Let us know in the comments.