AMD's Venice CPUs spark frenzy as AI demand outpaces supply until 2027

Demand for AMD's Epyc CPUs has surged far beyond expectations, driven by AI workloads like agentic AI. The company's upcoming Venice processors, set for release in late 2026, are already in high demand, with CEO Lisa Su noting that supply constraints will last into 2027. Major tech firms and hyperscalers are securing deals, pushing the AI infrastructure market to invest over $600 billion this year alone.

AMD's next-generation Venice CPUs have become a top priority for data centre customers. CEO Lisa Su admitted the market is larger than predicted, stating, "Everyone wants Venice." The processors, launching in the second half of 2026, are central to multi-year agreements with hyperscalers like Meta and OpenAI. Meta has committed to up to 6 gigawatts of Instinct GPUs paired with Epyc Venice chips, with deliveries beginning in late 2026. OpenAI is also part of a broader 12-gigawatt AI deal.

Supply chain preparations are underway to meet the rush. AMD has secured production capacity for its Instinct MI450 accelerators, HBM4 memory, and CoWoS packaging. Rollout of these components will start in the third quarter of 2026, ramping up significantly by the fourth. The company is collaborating with partners to expand capacity through 2027, but tight supply remains a challenge. The surge in demand isn't limited to AMD. Rival Intel is also struggling to fulfil orders for its Xeon processors as data centres scale up AI infrastructure. Industry analysts expect the CPU shortage to persist well into 2027, affecting both chipmakers and their customers.

AMD's Venice processors are set to play a key role in the AI boom, with major players locking in deals ahead of their 2026 launch. The company's efforts to boost supply will continue through 2027, but shortages are likely to remain. Hyperscalers and AI firms are investing heavily, ensuring that demand for high-performance CPUs stays strong for years to come.