Oracle-invested Ampere, which partnered with Qualcomm to launch AI servers, plans to launch 256-core chips next year to challenge Nvidia's market dominance.

AI servers will be launched next year

Ampere Computing LLC, a chip startup invested by Oracle, has teamed up with Qualcomm to enter the field of artificial intelligence and launch AI servers. Ampere announced plans to launch industry-leading 256 core chips next year, using TSMC's 33nm manufacturing process. The new device will be applied to servers produced by ultramicro computers, based on Ampere processors and Qualcomm's AI 100 Ultra acceleration chip.

Competition in the AI infrastructure market

Chip manufacturers are committed to developing hardware and software that can efficiently operate in AI inference, such as image or speech recognition. Ampere and Qualcomm are vying for a billion dollar AI infrastructure market, currently dominated by Nvidia, with most companies investing in Nvidia products. Ampere's Chief Product Officer, Jeff Wititch, stated that the new server can provide "five times more performance per dollar", addressing the high power consumption issues caused by AI infrastructure in data centers.

Indirect Competition and Market Strategy

Although Ampere and Qualcomm's new products will not directly compete with Nvidia, there is an indirect competitive relationship as AI chips are typically sold in systems with multiple chip pairs. Jim McGregor, founder of Tirias Research, believes that the collaboration between the two companies can prevent potential competitors from acquiring customers, and the key is to exclude competitors from the data center.