AMD(AMD.US) announced plans to start mass production of its new MI325X artificial intelligence chip in the fourth quarter of this year to enhance its competitiveness in the market dominated by Nvidia(NVDA.US). The company made the announcement during an event held in San Francisco on Thursday, as large tech companies such as Microsoft(MSFT.US) and Meta(META.US) have significantly increased their demand for AI processors, which is outpacing supply.AMD said the MI325X adopts the same architecture as the MI300X launched last year, equipped with a new memory technology to boost AI computing speed. The chip is designed to compete with Nvidia's Blackwell architecture.The MI325X chip is equipped with up to 256GB of HBM3E memory, 64GB more than the MI300X, with a bandwidth of 6TB/s, up from 5.3TB/s, while the core architecture remains unchanged, including 5nm XCD modules, 6nm IOD modules, 3.5D packaging, 153 billion transistors, and 304 computing units. Notably, the power consumption of MI325X reaches 1,000W, up 750W from MI320X. The chip also supports eight chips working in parallel to form a powerful platform with 2TB of HBM3E memory and 48TB/s bandwidth.Despite the launch of new products, AMD's stock price fell slightly during the event. The company also released several new network chips to accelerate data transmission speeds between chips and systems in data centers. In addition, AMD released its next-generation server central processing unit (CPU), codenamed "Turin", with one version dedicated to supporting graphics processing units (GPUs) to further accelerate AI processing. The flagship chip has nearly 200 processing cores, priced at $14,813, and adopts the Zen5 architecture, delivering up to 37% speed improvement for advanced AI data computing.Although AMD launched new products, it is expected to have little impact on Nvidia's data center revenue in the short term. According to market analysis, AMD raised its revenue expectation for its AI chips from $4 billion to $4.5 billion in July this year, benefiting from the surge in demand for generative AI products and strong demand for the MI300X chip. Analysts expect AMD's data center revenue this year to reach $12.83 billion, while Nvidia's data center revenue is expected to hit $110.36 billion.As of the close of trading on Thursday, AMD's stock price fell 4% to $164.18.