AMD, the second-largest player in AI processors after Nvidia, has significantly increased the price of its high-end AI accelerator. The company has raised the price of its Instinct MI350 accelerator by 70%. Previously sold for $15,000, the product is now available for $25,000.
AMD Increases AI Accelerator Price
The Instinct MI350 is positioned as one of AMD’s most powerful AI accelerators to date. The product directly competes with Nvidia’s B200 model, built on the Blackwell architecture. Despite the price increase, AMD’s new label is reportedly still more affordable than Nvidia’s similarly priced products.
The price update indicates a significant increase in demand for AMD in the AI market. This increase is likely to directly impact the company’s revenue in the coming quarters. It is known that the company has recently increased its production capacity and is collaborating directly with high-end customers.
AI hardware is central to AMD’s roadmap spanning the 2023-2026 period. Development of more advanced accelerators like the MI355X and off-the-shelf systems called Helios is ongoing. The company’s long-term plans include launching not only accelerator chips but also fully integrated systems running these chips.
The hardware preferences of major technology companies are also increasing AMD’s market influence. The company currently supplies hardware to large-scale customers like Tesla and OpenAI. These collaborations are making AMD a more central player in the AI ecosystem.
Nvidia has long maintained a clear leadership position in the industry. It continues to outperform its competitors with both its software platform and hardware strengths. However, AMD’s pricing update indicates that competition is becoming increasingly fierce. The likelihood of a significant disruption in the AI hardware market in the coming period is increasing.
