Meta and Microsoft say they will buy AMD's new AI chip as an alternative to Nvidia's

Meta, OpenAI, and Microsoft said they will use AMD’s newest AI chip, the Instinct MI300X - a sign that tech companies want alternatives to the expensive Nvidia graphics processors that have been essential for artificial intelligence.

If the MI300X is good enough and inexpensive enough when it starts shipping early next year, it could lower costs for developing AI models.

AMD CEO Lisa Su projected the market for AI chips will amount to USS400 billion or more in 2027, and she said she hopes AMD has a sizable part of that market.