At present, cloud computing has become an indispensable project for enterprise IT deployment. In the past few years, AMD's technology development in this area has clearly fallen behind competitors, including AWS, Google, and Microsoft. However, now AMD has found a cooperation with Chinese e-commerce giant Alibaba, and hopes that AMD will bring different competitiveness in the future. AMD's share price rose by more than 4% on the 17th, and was stimulated by this news. Since 2016, AMD's share price has doubled.
Alibaba announced last week that it will use AMD's display chip (GPU) in cloud computing infrastructure services. In this regard, the two companies further stated that they will plan to jointly carry out research and development work in the future. However, in this cooperation case, the parties did not announce the amount of cooperation related to this. However, for AMD, any certification obtained in the information center market is good news. AMD will benefit from the relevant certifications that enable relevant customers to invest heavily in cloud computing servers and other hardware.
In the past 10 years, AMD has a market share of approximately one-third in the x86 processor market, which is widely used in personal computers (PCs) and servers, and has been a major competitor to semiconductor leader Intel. However, as Intel develops more efficient technology, AMD's market share has lost ground and has now shrunk to less than 1%.
In addition, AMD is also developing and selling graphics processing chips (GPUs). However, competitor Nvidia is more successful in GPU applications, including scientific computing and artificial intelligence applications. At present, Alibaba also cooperates with Dahui and joint labs to develop new services.
Therefore, this time, AMD hopes to use AMD's AMD Radeon Pro-based display chip to create a data center for Alibaba Cloud Services through Alibaba's cooperation, and launch an elastic cloud computing product series to consolidate the information center field. The purpose of the application. In particular, for deep learning, virtual reality, 3D rendering, or applications in finance, meteorology, geology, dynamics simulation, genetic engineering, etc., AMD's high-performance computing services can continue to meet the broader cloud computing market. Demand
AMD President and CEO Su Zifeng pointed out that AMD's cooperation with Alibaba Cloud will leverage the strengths of both companies' technology and software engineering to meet the growing demand for GPU computing solutions and provide more direct cloud computing services. Alibaba Cloud President Hu Xiaoming also pointed out that the cooperation between AMD and Alibaba Cloud can provide more diverse cloud graphics processing solutions for both customers.
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