The market for artificial-intelligence (AI) accelerators is dominated by Nvidia (NASDAQ: NVDA). The company reportedly sold half a million AI GPUs in the third quarter, with more than half of that total going to Microsoft and Meta Platforms. Nvidia's H100 GPUs are a hot commodity, with AI companies scrambling to secure enough accelerators to tap into soaring demand for AI services.

Advanced Micro Devices (NASDAQ: AMD) is looking to end Nvidia's dominance with powerful AI accelerators of its own. The company officially launched its Instinct MI300 Series accelerators on Wednesday, kicking off a battle with Nvidia for a market that AMD expects to be worth $45 billion this year and $400 billion by 2027. The company plans on selling more than $2 billion worth of AI chips in 2024, up from essentially nothing today.

AMD is launching two AI accelerator products. The MI300X is the product that will go toe-to-toe with Nvidia's H100, featuring a whopping 192GB of high-bandwidth memory. That's more than twice as much memory as the H100, which could provide AMD with a key advantage given that large language models, or LLMs, require massive amounts of memory.

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Source Fool.com