AMD Increases Instinct MI350 AI Accelerator Price by 70%, Aiming to Compete with NVIDIA Blackwell GPUs

Advanced Micro Devices (AMD) is making significant strides in the artificial intelligence (AI) sector, particularly impacting the accelerator market. Recent reports indicate that AMD has raised the price of its high-performance AI chip to better compete with NVIDIA’s offerings.

AMD’s Price Adjustment for the Instinct MI350 AI Chip Signals Preparedness for Tougher Competition

In the competitive landscape of AI technologies, NVIDIA has established itself as the dominant player in the accelerator segment, benefiting from a strong product cycle and a well-integrated software-hardware ecosystem. However, AMD appears poised to challenge this status quo. According to a recent upgrade from HSBC, AMD plans to increase the price of its Instinct MI350 AI accelerator from $15, 000 to $25, 000, which constitutes a substantial increase of approximately 70%.Notably, despite this hike, the MI350 remains more affordable than its NVIDIA counterpart.

$AMD has reportedly raised the price of its MI350 AI chip by $10K to $25, 000 – newsisHSBC evaluated that “MI350 can now compete with $NVDA‘s Blackwell B200 in the market, ”& “AMD’s AI chip sales next year will be significantly higher than the prior estimate of $9.6B, at $15.1B”pic.twitter.com/gFc1eeLlHQ

— Wall St Engine (@wallstengine) July 28, 2025

This strategic pricing indicates that AMD is experiencing robust demand for its AI products, and such a steep price adjustment could result in substantially improved quarterly revenue. The performance capabilities of the Instinct MI350X AI accelerator reportedly position it as a competitor to NVIDIA’s Blackwell B200, highlighting its status as a flagship offering from AMD. While the financial implications of this price adjustment are still to be analyzed, it is evident that AMD is gearing up for intensified competition in the technology market.

AMD Instinct product roadmap presentation from 2023 to 2026 on stage.

During the recent “Advancing AI”event, AMD unveiled its plans to introduce new competitive offerings, including the MI355X AI accelerator and various rack-scale solutions, among which Helios is noteworthy. Furthermore, the company announced its ongoing partnerships with industry giants such as OpenAI and Tesla, marking a significant expansion of its influence in mainstream markets.

For an extended period, the competition in the AI sector has seemed one-sided, with NVIDIA leading the movement. However, AMD’s recent developments suggest that the landscape is about to become significantly more competitive and diverse.

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