AMD has recently revealed a major shift in its business strategy, choosing to prioritize AI chip development over its flagship gaming GPUs. This change is part of AMD's new "UDNA" strategy, which merges its gaming and data center graphics efforts to focus on AI.

In interviews with *Tom’s Hardware*, AMD's Jack Huynh made it clear that the company's gaming graphics goal is now to grow its market share at lower price points, rather than compete with Nvidia at the top-end. Huynh explained that in order to attract developers, AMD needs to demonstrate that it can capture a substantial portion of the market, which would incentivize developers to optimize their products for AMD’s hardware.

While AMD is taking a step back from producing high-end GPUs for gamers, it is fully committed to being a leader in AI data centers. With a solid market share thanks to its EPYC CPUs, the company sees this as a promising area for growth.

Interestingly, this strategy mirrors the moves of Nvidia, which has also been prioritizing AI chips due to their lucrative potential. Both companies are racing to release new architectures faster than before, with AMD seeking to emulate Nvidia's CUDA platform success.

Despite this pivot, Huynh emphasized that gaming remains an essential part of AMD's overall strategy, with value-oriented GPUs still being developed. However, like Nvidia, AMD may not be able to produce every type of chip simultaneously, leading to potential delays in new gaming GPUs.

For gamers, the hope is that AMD's focus on value GPUs can reignite competition in the more affordable price ranges, which have seen significant price hikes. Gamers, like many others, will be watching closely to see if AMD can win them over from Nvidia’s dominance.