Samsung signs $3 billion HBM3E supply deal with AMD

AMD has signed a $3 billion HBM3E deal with Samsung, signalling a HUGE AI push

AMD has reportedly signed a deal worth 4 trillion won ($3 billion US) that will see Samsung supply them with their 5th Generation HBM3E memory. This will give AMD a huge supply of the company’s new 12-high HBM3E memory modules. These memory chips will allow AMD to create AI accelerators that feature more memory and boosted memory bandwidth.

This newly secured memory will reportedly be used to create AMD’s new MI350 datacenter chips. These claims come from Korean media reports. AMD’s new MI350 chip will reportedly feature 30% more memory bandwidth than AMD’s existing MI300. This change will boost the performance of their top AI chips, making them more competitive with Nvidia’s offerings. These chips should also allow AMD to boost the memory capacity of their newest AI chips.

This agreement between Samsung and AMD secures for AMD a strong supply of fast HBM3E memory and secures Samsung memory sales. This is a win-win situation for both companies, especially given the desire of many companies to use non-Nvidia AI products.

Nvidia are currently the dominant force within the AI market, and that has made many customers nervous. Nvidia’s supply of chips is limited, and that has placed alternative hardware in high demand. If customers cannot access Nvidia’s AI chips quickly enough, they will seek alternative hardware partners. This has made AMD’s latest datacenter accelerators highly desirable.

With AMD hosting this year’s opening keynote at CES 2024, we expect the company to make some major AI announcements. Even so, will this be enough to make Nvidia’s market position any less dominant?

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