Recently, Advanced Micro Devices ( #AMD ) clinched a deal with #Google to supply its #FirePro S9300 x2 GPU in the latter’s cloud platform. AMD’s stock price has shot by close to 30% since the announcement of this deal. This is because this deal is quite significant for AMD, as most of the big players in the cloud storage market currently use #Nvidia ’s GPUs. According to some sources, Google’s cloud market share stood at 8% in 2016, just behind #Amazon and #Microsoft. In this analysis, we further elaborate on the reasons as to why this deal is significant for AMD. Increasing Use of GPUs In Data Centers The application of GPUs is exponentially increasing in hyperscale data centers. Hyperscale data centers are applying deep learning algorithms to enhance their applications and make them smarter. As major tech companies further pursue their opportunities in the cloud and AI market, it will further fuel the demand for GPUs in data-centers.
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