AMD Reportedly Increases Instinct MI350 AI Accelerator Price by 70%, Positions It to Rival NVIDIA’s Blackwell B200

AMD is taking a bold step in the AI accelerator market. According to a recent report, the company is increasing the price of its flagship Instinct MI350 AI chip from $15,000 to $25,000, marking an approximate 70% jump. This strategic move reflects AMD’s growing confidence in the MI350’s capabilities and its intent to compete directly with NVIDIA’s high-end Blackwell B200 GPUs.

Despite the steep increase, the MI350 remains priced below NVIDIA’s competing offerings. The MI350 belongs to AMD’s Instinct series, which targets large-scale AI and compute-intensive applications. Analysts at HSBC suggest this price hike is a response to strong demand and growing belief that AMD’s performance benchmarks are on par with NVIDIA’s top-tier products.

The new price also signals AMD’s expectations for increased revenue in upcoming quarters. With enterprises and major cloud players seeking alternatives to NVIDIA’s platform, AMD appears well positioned to capture more market share.

NVIDIA has long dominated the AI accelerator landscape, thanks to its cutting-edge hardware and CUDA-driven software ecosystem. However, AMD is quickly catching up with the MI350, supported by its own ROCm software stack and expanding developer support.

At its Advancing AI event, AMD shared a roadmap through 2026 that includes the upcoming MI355X accelerator, Helios rack-scale systems, and partnerships with key customers like OpenAI and Tesla. These initiatives show that AMD is not only focused on hardware performance but also building the infrastructure and support needed for long-term success.

The AI hardware sector has remained largely in NVIDIA’s control, but AMD’s pricing strategy and product maturity suggest a more competitive environment ahead. The MI350’s price increase may indicate strong demand and tighter supply, or it may represent AMD’s move toward establishing a premium position in the market.

If AMD can sustain this momentum, the AI market is likely to become more competitive. Intel and other emerging players are also entering the field, which could lead to a more balanced and diversified industry over the next few years.

What are your thoughts on AMD's new pricing strategy? Do you think the MI350 has what it takes to challenge NVIDIA's dominance in AI? Share your views in the comments.