Lisa Su, CEO of Advanced Micro Devices, testifies during the Senate Commerce, Science and Transportation Committee hearing titled “Winning the AI Race: Strengthening U.S. Capabilities in Computing and Innovation,” in Hart building on Thursday, May 8, 2025.
Tom Williams | CQ-Roll Call, Inc. | Getty Images
Advanced Micro Devices on Thursday unveiled new details about its next-generation AI chips, the Instinct MI400 series, that will ship next year.
The MI400 chips will be able to be assembled into a full server rack called Helios, AMD said, which will enable thousands of the chips to be tied together in a way that they can be used as one “rack-scale” system.
“For the first time, we architected every part of the rack as a unified system,” AMD CEO Lisa Su said at a launch event in San Jose, California, on Thursday.
OpenAI CEO Sam Altman appeared on stage on with Su and said his company would use the AMD chips.
“When you first started telling me about the specs, I was like, there’s no way, that just sounds totally crazy,” Altman said. “It’s gonna be an amazing thing.”
AMD’s rack-scale setup will make the chips look to a user like one system, which is important for most artificial intelligence customers like cloud providers and companies that develop large language models. Those customers want “hyperscale” clusters of AI computers that can span entire data centers and use massive amounts of power.
“Think of Helios as really a rack that functions like a single, massive compute engine,” said Su, comparing it against Nvidia’s Vera Rubin racks, which are expected to be released next year.
OpenAI CEO Sam Altman poses during the Artificial Intelligence (AI) Action Summit, at the Grand Palais, in Paris, on February 11, 2025.
Joel Saget | Afp | Getty Images
AMD’s rack-scale technology also enables its latest chips to compete with Nvidia’s Blackwell chips, which already come in configurations with 72 graphics-processing units stitched together. Nvidia is AMD’s primary and only rival in big data center GPUs for developing and deploying AI applications.
OpenAI — a notable Nvidia customer — has been giving AMD feedback on its MI400 roadmap, the chip company said. With the MI400 chips and this year’s MI355X chips, AMD is planning to compete against rival Nvidia on price, with a company executive telling reporters on Wednesday that the chips will cost less to operate thanks to lower power consumption, and that AMD is undercutting Nvidia with “aggressive” prices.
So far, Nvidia has dominated the market for data center GPUs, partially because it was the first company to develop the kind of software needed for AI developers to take advantage of chips originally designed to display graphics for 3D games. Over the past decade, before the AI boom, AMD focused on competing againstIntel in server CPUs.
Su said that AMD’s MI355X can outperform Nvidia’s Blackwell chips, despite Nvidia using its “proprietary” CUDA software.
“It says that we have really strong hardware, which we always knew, but it also shows that the open software frameworks have made tremendous progress,” Su said.
AMD shares are flat so far in 2025, signaling that Wall Street doesn’t yet see it as a major threat to Nvidia’s dominance.
AMD
Courtesy: AMD
Andrew Dieckmann, AMD’s general manger for data center GPUs, said Wednesday that AMD’s AI chips would cost less to operate and less to acquire.
“Across the board, there is a meaningful cost of acquisition delta that we then layer on our performance competitive advantage on top of, so significant double-digit percentage savings,” Dieckmann said.
Over the next few years, big cloud companies and countries alike are poised to spend hundreds of billions of dollars to build new data center clusters around GPUs in order to accelerate the development of cutting-edge AI models. That includes $300 billion this year alone in planned capital expenditures from megacap technology companies.
AMD is expecting the total market for AI chips to exceed $500 billion by 2028, although it hasn’t said how much of that market it can claim — Nvidia has over 90% of the market currently, according to analyst estimates.
Both companies have committed to releasing new AI chips on an annual basis, as opposed to a biannual basis, emphasizing how fierce competition has become and how important bleeding-edge AI chip technology is for companies like Microsoft, Oracle and Amazon.
AMD has bought or invested in 25 AI companies in the past year, Su said, including the purchase of ZT Systems earlier this year, a server maker that developed the technology AMD needed to build its rack-sized systems.
“These AI systems are getting super complicated, and full-stack solutions are really critical,” Su said.
What AMD is selling now
Currently, the most advanced AMD AI chip being installed from cloud providers is its Instinct MI355X, which the company said started shipping in production last month. AMD said that it would be available for rent from cloud providers starting in the third quarter.
Companies building large data center clusters for AI want alternatives to Nvidia, not only to keep costs down and provide flexibility, but also to fill a growing need for “inference,” or the computing power needed for actually deploying a chatbot or generative AI application, which can use much more processing power than traditional server applications.
“What has really changed is the demand for inference has grown significantly,” Su said.
AMD officials said Thursday that they believe their new chips are superior for inference to Nvidia’s. That’s because AMD’s chips are equipped with more high-speed memory, which allows bigger AI models to run on a single GPU.
The MI355X has seven times the amount of computing power as its predecessor, AMD said. Those chips will be able to compete with Nvidia’s B100 and B200 chips, which have been shipping since late last year.
AMD said that its Instinct chips have been adopted by seven of the 10 largest AI customers, including OpenAI, Tesla, xAI, and Cohere.
Oracle plans to offer clusters with over 131,000 MI355X chips to its customers, AMD said.
Officials from Meta said Thursday that they were using clusters of AMD’s CPUs and GPUs to run inference for its Llama model, and that it plans to buy AMD’s next-generation servers.
A Microsoft representative said that it uses AMD chips to serve its Copilot AI features.
Competing on price
AMD declined to say how much its chips cost — it doesn’t sell chips by themselves, and end-users usually buy them through a hardware company like Dell or Super Micro Computer — but the company is planning for the MI400 chips to compete on price.
The Santa Clara company is pairing its GPUs alongside its CPUs and networking chips from its 2022 acquisition of Pensando to build its Helios racks. That means greater adoption of its AI chips should also benefit the rest of AMD’s business. It’s also using an open-source networking technology to closely integrate its rack systems, called UALink, versus Nvidia’s proprietary NVLink.
AMD claims its MI355X can deliver 40% more tokens — a measure of AI output — per dollar than Nvidia’s chips because its chips use less power than its rival’s.
Data center GPUs can cost tens of thousands of dollars per chip, and cloud companies usually buy them in large quantities.
AMD’s AI chip business is still much smaller than Nvidia’s. It said it had $5 billion in AI sales in its fiscal 2024, but JP Morgan analysts are expecting 60% growth in the category this year.
Jensen Huang, co-founder and chief executive officer of Nvidia Corp., left, and Emmanuel Macron, France’s president at the 2025 VivaTech conference in Paris, France, on Wednesday, June 11, 2025.
Nathan Laine | Bloomberg | Getty Images
Nvidia boss Jensen Huang has been on a tour of Europe this week, bringing excitement and intrigue to everywhere he visited.
His message was clear — Nvidia is the company that can help Europe build its artificial intelligence infrastructure so the region can take control of its own destiny with the transformative technology.
I’ve been in London and Paris this week following Huang around as he met with U.K. Prime Minister Keir Starmer, French President Emmanuel Macron, journalists, fans, analysts and gave a keynote at Nvidia’s GTC event in the capital of France.
Here’s the what I saw and the key things I learned.
At London Tech Week, the lines were long and the auditorium packed to hear him speak.
The GTC event in Paris was full too. It was like going to a music concert or sporting event. There were GTC Paris T-shirts on the back of every chair and even a merchandise store.
Nvidia GTC in Paris on 11 June 2025
Arjun Kharpal
The aura of Huang really struck me when, after a question-and-answer session with him and a room full of attendees, most people lined up to take pictures or selfies with him.
Macron and Starmer both wanted to be seen on stage with him.
Nvidia positions itself as Europe’s AI hope
Nvidia’s key product is its graphics processing units (GPU) that are used to train and execute AI applications.
But Huang has positioned Nvidia as more than a chip company. During the week, he described Nvidia as an infrastructure firm. He also said AI should be seen as infrastructure like electricity.
His pitch to all countries was that Nvidia could be the company that will help countries build out that infrastructure.
“We believe that in order to compete, in order to build a meaningful ecosystem, Europe needs to come together and build capacity that is joint,” Huang said during a speech at the Viva Tech conference in Paris on Wednesday.
Jensen Huang, CEO of Nvidia, speaks during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 11, 2025.
Gonzalo Fuentes | Reuters
One of the most significant partnerships announced this week is between French startup Mistral and Nvidia to build a so-called AI cloud using the latter’s GPUs.
Huang spoke a lot during the week about “sovereign AI” — the concept of building data centers within a country’s borders that services its population rather than relying on servers located overseas. Among European policymakers and companies, this has been an important topic.
Huang also heaped praise on the U.K., France and Europe more broadly when it came to their potential in the AI industry.
China still behind but catching up
On Thursday, Huang decided to do a tour of Nvidia’s booth and I managed to catch him to get a few words on CNBC’s “Squawk Box Europe.”
A key topic of that discussion was China. Nvidia has not been able to sell its most advanced chips to China because of U.S. export controls and even less sophisticated semiconductors are being blocked. In its last quarterly results, Nvidia took a $4.5 billion hit on unsold inventory.
I asked Huang about how China was progressing with AI chips, in particular referencing Huawei, the Chinese tech giant that is trying to make semiconductor products to rival Nvidia.
Huang said Huawei is a generation behind Nvidia. But because there is lots of energy in China, Huawei can just use more chips to get results.
“If the United States doesn’t want to partake, participate in China, Huawei has got China covered, and Huawei has got everybody else covered,” Huang said.
In addition, Huang is concerned about the strategic importance of U.S. companies not having access to China.
“It’s even more important that the American technology stack is what AI developers around the world build on,” Huang said.
Just reading between the lines somewhat — Huang sees a world where Chinese AI tech advances. Some countries may decide to build their AI infrastructure with Chinese companies rather than American. That in turn could give Chinese companies a chance to be in the AI race.
Quantum, robotics and driverless is the future
Huang often uses public appearances to talk about the future.
I asked him about some of those areas he’s bullish on like robotics and driverless cars, technology that Nvidia’s products can power.
Huang told me this will be the “decade of” autonomous vehicles and robotics.
Nvidia boss Jensen Huang delivers a speech on stage talking about robotics.
Arjun Kharpal | CNBC
During his keynote at GTC Paris on Wednesday, he also address quantum computing, saying the technology is reaching “an inflection point.”
Quantum computers are widely believed to be able to solve complex problems that classic computers can’t. This could include things like discovering new drugs or materials.
In an aerial view, a Tesla showroom at 12845 N. US 183 Highway Service Road is seen after police were called for a suspicious device in Austin, Texas, on March 24, 2025.
Brandon Bell | Getty Images
With Elon Musk looking to June 22 as his tentative start date for Tesla’s pilot robotaxi service in Austin, Texas, protesters are voicing their opposition.
Public safety advocates and political protesters, upset with Musk’s work with the Trump administration, joined together in downtown Austin on Thursday to express their concerns about the robotaxi launch. Members of the Dawn Project, Tesla Takedown and Resist Austin say that Tesla’s partially automated driving systems have safety problems.
Tesla sells its cars with a standard Autopilot package, or a premium Full Self-Driving option (also known as FSD or FSD supervised), in the U.S. Automobiles with these systems, which include features like automatic lane keeping, steering and parking, have been involved in dozens of collisions, some fatal, according to data tracked by the National Highway Traffic Safety Administration.
Tesla’s robotaxis, which Musk showed off in a video clip on X earlier this week, are new versions of the company’s popular Model Y vehicles, equipped with a future release of Tesla’s FSD software. That “unsupervised” FSD, or robotaxi technology, is not yet available to the public.
Tesla critics with The Dawn Project, which calls itself a tech-safety and security education business, brought a version of Model Y with relatively recent FSD software (version 2025.14.9) to show residents of Austin how it works.
In their demonstration on Thursday, they showed how a Tesla with FSD engaged zoomed past a school bus with a stop sign held out and ran over a child-sized mannequin that they put in front of the vehicle.
Dawn Project CEO Dan O’Dowd also runs Green Hills Software, which sells technology to Tesla competitors, including Ford and Toyota.
Stephanie Gomez, who attended the demonstration, told CNBC that she didn’t like the role Musk had been playing in the government. Additionally, she said she has no confidence in Tesla’s safety standards and said there’s been a lack of transparency from Tesla regarding how its robotaxis will work.
Another protester, Silvia Revelis, said she also opposed Musk’s political activity, but that safety is the biggest concern.
“Citizens have not been able to get safety testing results,” she said. “Musk believes he’s above the law.”
Tesla didn’t immediately respond to a request for comment.
23andMe founder Anne Wojcicki speaks during a House Committee on Oversight and Government Reform hearing in Washington, D.C., on June 10, 2025.
Andrew Harnik | Getty Images
Anne Wojcicki, the co-founder and former CEO of 23andMe, has regained control over the embattled genetic testing company after her new nonprofit, TTAM Research Institute, outbid Regeneron Pharmaceuticals, the company announced Friday.
TTAM will acquire substantially all of 23andMe’s assets for $305 million, including its Personal Genome Service and Research Services business lines as well as telehealth subsidiary Lemonaid Health. It’s a big win for Wojcicki, who stepped down from her role as CEO when 23andMe filed for Chapter 11 bankruptcy protection in March.
Last month, Regeneron announced it would purchase most of 23andMe’s assets for $256 million after it came out on top during a bankruptcy auction. But Wojcicki submitted a separate $305 million bid through TTAM and pushed to reopen the auction. TTAM is an acronym for the first letters of 23andMe, according to The Wall Street Journal.
“I am thrilled that TTAM Research Institute will be able to continue the mission of 23andMe to help people access, understand and benefit from the human genome,” Wojcicki said in a statement.
23andMe gained popularity because of its at-home DNA testing kits that gave customers insight into their family histories and genetic profiles. The five-time CNBC Disruptor 50 company went public in 2021 via a merger with a special purpose acquisition company. At its peak, 23andMe was valued at around $6 billion.
The company struggled to generate recurring revenue and stand up viable research and therapeutics businesses after going public, and it has been plagued by privacy concerns since hackers accessed the information of nearly seven million customers in 2023.
TTAM’s acquisition is still subject to approval by the U.S. Bankruptcy Court for the Eastern District of Missouri.