AMD Accelerates Instinct MI350 GPU Launch to Boost Data Center Revenue and AI Compute Growth

AMD has announced plans to launch its next-generation Instinct MI350 data center GPUs sooner than initially expected.

During the company's Q4 2024 earnings call on Tuesday, CEO Lisa Su revealed that AMD intends to begin sampling the MI350 to “key customers” within this quarter, with production shipments set to be “accelerated” by mid-year.

“We had previously projected the MI350 launch for the second half of [2025],” Su explained. “However, the progress has exceeded our expectations, and there is significant customer demand. As a result, we are bringing forward the production ramp to mid-year, which will enhance our competitive positioning.”

While AMD’s data center revenue still lags far behind that of Nvidia—whose quarterly revenue routinely exceeds tens of billions of dollars—AMD has made notable strides over the past year, securing and retaining major clients such as Meta, Microsoft, and IBM.

The company reported that sales of its Instinct chips surpassed $5 billion in 2024, with expectations for the data center segment to experience “double-digit” growth in 2025. Last year, the data center division accounted for approximately half of AMD’s total revenue ($3.9 billion out of $7.1 billion), according to Tuesday’s earnings report.

“I believe demand for AI computing is robust,” Su continued. “[MI350] will serve as a catalyst for our data center GPU business… We anticipate this segment will grow into the tens of billions in the coming years.”

Investors reacted positively to AMD’s fourth-quarter performance, with the company's stock rising 4.58% as of the time of publication.