AMD, Intel target AI inferencing to rival Nvidia monopoly

The race for dominance in AI computing is intensifying as AMD and Intel have set their sights on AI inferencing, a critical and fast-growing segment poised to disrupt Nvidia's monopoly.

- JATIN GROVER

With enterprises increasingly prioritizing cost-effective and energy-efficient solutions, the landscape of AI hardware is undergoing a shift. Nvidia has long held a commanding lead in AI computing, fueled by its cutting-edge graphic processing units (GPUs) that dominate AI training workloads. However, industry analysts say the emergence of AI inferencing —the process of deploying trained AI models to make real-time predictions or decisions—could redefine the competitive dynamics in this market.

AI inferencing represents the stage where businesses begin to see tangible returns on their AI investments and AMD and Intel are positioning themselves to capitalize on this opportunity.

While Nvidia GPUs remain the gold standard for AI training, their high cost—up to five times more than AMD and Intel alternatives—poses a challenge for enterprises looking to scale inferencing operations. "AI inferencing will become a larger market than training over time and both AMD and Intel are positioning their GPUs and CPUs to capitalize on this transition," said Sunil Gupta, co-founder and CEO of Yotta.