‘Instincts are massively cheaper than Nvidia’s H100’: AMD is selling flagship AI GPUs at a huge discount to Microsoft — but I’m not sure that will be enough to bother Nvidia

AMD‘s flagship AI GPUs, the Instincts, are being sold at a significant discount to Microsoft, offering a competitive alternative to Nvidia‘s pricier H100. According to Tom’s Hardware, Nvidia’s H100 AI GPUs cost up to four times more than AMD’s competing MI300X, with prices peaking beyond $40,000.

Despite the price advantage, AMD’s market strategy is not expected to significantly impact Nvidia’s stronghold in the AI GPU market. This is due to Nvidia’s established CUDA software stack, which has been optimized for a wide range of AI applications and workloads, resulting in overwhelming demand for its GPUs.