AMD launches its most powerful chip for data centers

AMD on Thursday launched its latest chipset for data centers, and said cloud computing services from Google, Microsoft and Oracle will use the new chip.

The company’s CEO, Lisa Su, said: The fourth generation EPYC processor, codenamed Genoa, will bring about a significant improvement in performance and energy efficiency compared to the previous chip.

Su said: These features benefit organizations and cloud data centers. It reduces financial expenses, operating expenses, and total cost of ownership.

It is noteworthy that the launch of the Genoa chip comes while AMD’s US competitor, Intel, is facing difficulties in delivering its latest chipset for data centers, codenamed Sapphire Rapids, to customers in a timely manner.

“With this new generation, AMD has achieved a massive performance leap against not only Apple, but against the previous generation, making the scalability of any AMD-based solution even more realistic,” said Bob O’Donnell, analyst with TECHnalysis Research.

AMD, which launched its first EPYC-type data center chip in 2017, has been steadily gaining market share at Intel’s expense, making strong advances especially with cloud service providers.

According to research firm IDC, AMD’s share of the chipset market, built on the x86 architecture and used by cloud services, rose from zero in 2016 to about 29 percent last year. Cloud computing and its services are one of the biggest growth areas for the semiconductor sector.

“IDC expects AMD to remain on the right track, and continue to drive market share in public cloud computing deployments,” said Ashish Nadkarni, Cloud and Data Center Analyst at IDC.

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