Advanced Micro Devices (AMD) is laying off about 1,000 employees, or 4% of its global workforce, as it shifts its focus towards developing AI chips to compete with Nvidia in the growing AI market, Reuters reports.
AMD’s data center revenue, which includes AI graphics processors, saw revenue double in the last quarter, while its personal computer unit grew by 29%, and its gaming division saw a 69% decline. The company expects significant growth in the data center segment, with a projected 98% increase in 2024. AMD is investing heavily in AI chip development, with plans to begin mass production of its MI325X chip in the fourth quarter.
However, the costs associated with AI chip development have risen, and AMD’s shares have fallen over 3% this year due to investor concerns.
