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The world’s largest cloud provider, Amazon Web Services (AWS), has announced it is considering using newly announced artificial intelligence (AI) chips by Advanced Micro Devices (AMD) – a market dominated by rival NVIDIA. 

AMD revealed its new chip, the MI300X, at a presentation event this week, detailing some technical specifications that beat its Nvidia rival. 

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Despite this, AMD’s shares fell after its company presentation event as it didn’t disclose a full customer list for its new chips. 

According to Reuters, however, Dave Brown, vice president of cloud at Amazon, told the publication that the company was considering using the AMD chip.

Brown told the publication: “We’re still working together on where exactly that will land between AWS and AMD, but it’s something that our teams are working together on. 

“That’s where we’ve benefited from some of the work that they’ve done around the design that plugs into existing systems.”

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AMD’s new chips represent the strongest challenge to Nvidia yet, which currently has an 80% market share for AI chips. 

Lisa SU, CEO of AMD, said AI is currently the company’s “largest and most strategic long-term growth opportunity.”

Speaking at the event on Tuesday, Su said: “We think about the data center AI accelerator [market] growing from something like $30bn this year, at over 50% compound annual growth rate, to over $150bn in 2027.”

The announcement from AMD follows the global value of AI investment falling dramatically in 2022.

The total value of deals made in the AI market totalled $72.9bn in 2022, falling from a $127.2bn peak in 2021.

AI deals have been growing steadily over the decade, growing from a total of just $1.6bn in 2013.

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