AMD Announces Meta, formerly Facebook, as customer; stocks soar over 11%

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AMD said on Monday (8) that it has closed a deal with Meta, formerly known as Facebook, to be its chip customer for data processing centers. The announcement sent shares in the semiconductor company soaring more than 11%.

The company also announced a range of new chips aimed at taking on rivals like Nvidia in the supercomputing markets, as well as smaller competitors including Ampere in the cloud computing market.

After years behind Intel in the chip market, AMD has been gaining market share since 2017, when a turnaround plan led by Chief Executive Lisa Su put the company on course for its current position of faster chips than the rival.

AMD now has nearly a quarter of the x86 chip market, according to Mercury Research.

After securing Meta as a customer, AMD did business with many of the top Intel chip users. The company also has business with Microsoft’s Google Cloud, Amazon Web Services and Azure.

AMD also announced plans to face rivals beyond Intel. The company announced the MI200 chip, an accelerator for tasks such as machine learning and artificial intelligence.

The new AMD chip is designed to stand up to Nvidia’s A100 chip, which, along with other chips designed to accelerate artificial intelligence, has helped make Nvidia the most valuable US-listed semiconductor company.

AMD also targeted smaller rivals. The company announced a new processor called “Bergamo”, which will be released in the first half of 2023. The chip will have 128 computing cores, which are useful for cloud computing companies that lease their chips to external customers.

Ampere Computing, a startup founded by former Intel executives, is pursuing a similar strategy and this year announced Oracle’s cloud service as a customer.

Reference: CNN Brasil

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