Advanced Micro Devices (AMD) has decided to reduce its global workforce by 4%, amounting to approximately 1,000 employees, to sharpen its focus on AI chip development and compete more effectively with NVIDIA in the enterprise chip market, according to Reuters.
AMD is currently seen as a leading rival to NVIDIA, which dominates the data center chip market essential for generative AI applications, such as OpenAI’s ChatGPT. An AMD spokesperson informed Reuters, “We are taking multiple targeted actions to align our resources with our largest growth opportunities.”
In the quarter ending September, AMD’s data center segment saw over 100% growth, while its personal computer segment grew by 29%, though sales in its gaming unit fell by 69%. Analysts predict a 98% sales increase in the data center unit for 2024, outpacing the company’s anticipated overall revenue growth of 13%.
AMD is heavily investing in AI chip production, with plans to start manufacturing its new MI325X AI chip in the fourth quarter. Research and development expenses grew by nearly 9% in the third quarter, with overall sales costs rising by 11%.
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