AMD

has unveiled details about its

Instinct MI400 series

, the company's next generation of AI chips set to ship next year. CEO Lisa Su presented the chips at a launch event in San Jose, California, emphasising their design for "rack-scale" systems crucial for powering the massive AI computations of today and tomorrow. Su also claimed that AMD’s MI355X can outperform

Nvidia

’s Blackwell chips.The MI400 series chips are designed to be assembled into a full server rack, dubbed Helios, which AMD described as a unified system capable of tying thousands of chips together, as per a report by CNBC."For the first time, we architected every part of the rack as a unified system," Su explained, highlighting Helios as "really a rack that functions like a single, massive compute engine."

A significant endorsement came from OpenAI CEO Sam Altman, who appeared on stage with Su. Altman expressed confidence in the new chips

"When you first started telling me about the specs, I was like, there’s no way, that just sounds totally crazy. It’s gonna be an amazing thing," said Altman, whose company is a customer of Nvidia chips. OpenAI also confirmed it will be integrating the AMD chips.

This "rack-scale" approach is vital for hyperscale AI clusters that span entire data centers, catering to the enormous power demands of cloud providers and developers of large language models, the report said. Su directly compared Helios to Nvidia's upcoming Vera Rubin racks, signaling AMD's intent to directly challenge its main rival.AMD's rack-scale technology aims to put its latest chips squarely in competition with Nvidia's Blackwell chips, which already offer configurations integrating 72 graphics-processing units. Nvidia currently holds a near-monopoly in the market for big data center GPUs, partly due to its early lead in developing essential AI software like CUDA. OpenAI, notably a significant Nvidia customer, has been providing feedback to AMD on its MI400 roadmap. AMD is positioning the MI400 chips, along with this year’s MI355X chips, as a more cost-effective alternative to Nvidia's offerings. Su also claimed that AMD’s MI355X can outperform Nvidia’s Blackwell chips, despite Nvidia's proprietary CUDA software advantage, saying that AMD's "really strong hardware" and the "tremendous progress" made by open software frameworks.