Speaking with Yahoo Finance, AMD CEO Lisa Su didn’t leave any doubt in anyone’s mind about what kind of company AMD is when she put her cards on the table by saying that “We are a data center first company”. This really shouldn’t come as a surprise, as the tides have been turning for decades in where chip manufacturers such as AMD and NVIDIA dedicate their resources. There was a time, a very long time ago, back in the 1990s, when most PC enthusiasts could perceive them both as consumer-focused when it came to their many GPU product launches, which became a staple for gamers worldwide. As time went on, particularly in the early 2000s, things began to change as each began expanding their portfolios into Enterprise markets. Meanwhile, Intel had always employed a dual identity in offering both consumer and business-related products and was the exception when it came to graphics solutions in that it primarily focused on integrated graphics rather than dedicated cards.
As time went on, we would see Intel and AMD trade blows in the consumer sectors with their respective CPU offerings, but then AMD largely competed with NVIDIA on the GPU front, and while Intel would briefly, eventually, enter the dGPU market with its Arc graphics cards, it would essentially bow out due to unfavorable market conditions. However, during all this, consumers have been left with increasingly fewer options when it comes to GPU launches, and AMD itself has admitted that it no longer would compete at the flagship tier with its graphics cards. All the while, many a pundit has pointed fingers at NVIDIA, claiming anti-consumer tactics while propping AMD up as the underdog who still represented the gaming community. However, at this point, the AMD CEO has made it clear that the company is not focused on this but, like NVIDIA and Intel, is directly focused on pleasing the AI overlords and its tebillionaire custodians. The following, per Yahoo Finance (via VideoCardz):
““We are a data center first company, that is our profile, and people need more computing to power all these applications.”
– Dr. Lisa Su, AMD CEO
This statement comes as AMD has seen 64% of its $13.38 billion quarterly revenue come from data center-related revenue. In direct comparison, AMD’s gaming division reported a 40% YoY decline, which totaled only $773 million. It’s not hard math: hundreds of millions per year for gaming or billions per quarter for data centers. There’s a parasitic cyclical effect happening in that memory and storage manufacturers are prioritizing orders for data centers, which has resulted in unprecedented price increases across the board in the tech industry. Meanwhile, companies such as AMD and NVIDIA, which have been the staple of PC enthusiasts for GPUs, have all but ceased production of GPUs due to these rising costs, and neither has launched any upgraded or new products in over a year, but at least we know in print now where AMD stands on this.
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