AMD CEO Lisa Su Confirms First Delivery Before Year-End, While AI Chip Market Expected to Exceed $500 Billion and Huawei Expands to Middle East.
Advanced Micro Devices (AMD) has confirmed that the first generation of artificial intelligence GPU shipments will be delivered before the end of 2025, as the company prepares to re-enter the Chinese market through advanced cloud infrastructure deployment. CEO Lisa Su revealed that AMD is receiving chips from TSMC for production operations, but warned that costs will be higher when chips are manufactured at TSMC factories in the US. According to Su's analysis at an AI-themed event in Washington, the same type of chip would be 5% to 20% more expensive if produced in the US compared to Taiwan.
At a special event organized by the All-In podcast group with the presence of many tech leaders and senators, called the "Hill and Valley Forum", Su acknowledged the booming demand for AI chips in the technology sector. She mentioned prominent figures like Sam Altman of OpenAI and Elon Musk of xAI, who are heavily investing in artificial intelligence.
AI accelerators currently play a crucial role in the AI technology race, helping tech companies consolidate their global position by providing the necessary processing capabilities for AI model development and operation. AMD and Nvidia are fiercely competing in the global AI accelerators segment, with Su estimating that this market will exceed $500 billion in just a few years due to technological advantages and increasingly widespread adoption.
Huawei Expands AI Strategy to New Markets
Against the backdrop of surging global AI chip demand, Huawei Technologies has built a strategy to overtake Nvidia by expanding into the Middle East and Southeast Asian markets with small AI chip volumes. The Chinese corporation is currently negotiating sales prices with potential customers in UAE, Saudi Arabia, and Thailand for the Ascend 910B chip product, according to insider sources.
However, no agreements have been signed as UAE shows little interest in Huawei's proposal, while the situation in Thailand remains unclear. To address this challenge, Huawei has deployed an alternative strategy by providing remote access to the CloudMatrix 384 system, a Chinese AI platform using the company's advanced AI chips. Limited supply makes these chips difficult to export directly.
The primary reason for Huawei's push into the Middle Eastern market is the strong growth of AI chip demand in the region. Not only Huawei, but Nvidia is also attracted by opportunities here, creating fierce competition to capture this highly potential market. Currently, the governments of Thailand and Saudi Arabia have not responded to requests for comments on Huawei's cooperation proposals.
