will lay off 4% of its global workforce, or about 1,000 employeesto focus efforts on developing artificial intelligence chips and compete more intensely with the leader.
AMD is considered the closest rival to Nvidia in the lucrative market for chips used in Generative AIlike ChatGPTyes OpenAI.
“As part of aligning our resources with our biggest growth opportunities, we are taking a number of specific actions,” an AMD spokesperson told Reuters.
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Revenue in AMD’s data center segment, which involves the company’s chips for AI applications, increased more than twice in the third trimester. On the other hand, the personal computer segment grew 29%, while sales aimed at the video game market fell by around 69% during the period.
Analysts expect AMD’s chip division to data centers grow 98% in 2024, surpassing the 13% expansion of the group’s overall revenue, according to an average of estimates compiled by Lseg among analysts.
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AMD plans to begin mass production of a new version of its artificial intelligence chip called MI325X in the fourth quarter of the year.
The company’s research and development costs rose about 9% in the third quarter, while total cost of sales rose 11%.
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