AMD Secures $1 Billion Department of Energy Supercomputer Contract

TLDR

• The U.S. Department of Energy signed a $1 billion agreement with AMD to build two supercomputers for clean energy, cancer research, and national security work
• The first system called Lux will launch within six months using AMD’s MI355X chips, while Discovery will arrive in 2029 with MI430 series processors
• Energy Secretary Chris Wright expects the computers to advance fusion energy and speed up drug discovery for cancer treatments
• IBM successfully tested quantum error-correction algorithms on AMD chips, running ten times faster than baseline requirements
• AMD stock rose 2.67% on Monday to $259.67 ahead of its November 4 earnings report

The U.S. Department of Energy has formed a partnership with Advanced Micro Devices to construct two new supercomputers. The $1 billion deal aims to accelerate research in clean energy, cancer treatment, and national security.

Energy Secretary Chris Wright announced the systems will give scientists tools to study complex problems beyond current computing capabilities. The machines will handle massive amounts of data at high speeds. The department plans to use the computers for fusion energy projects and drug discovery research.

The first supercomputer, named Lux, will begin operations within six months. It will use AMD’s MI355X artificial intelligence chips along with central processors and networking chips from the company. AMD, Hewlett Packard Enterprise, Oracle Cloud Infrastructure, and Oak Ridge National Laboratory are co-developing the system.

Oak Ridge National Laboratory Director Stephen Streiffer said Lux will deliver about three times the AI capacity of current supercomputers. AMD CEO Lisa Su called this the fastest deployment of a computer this size that she has seen. She emphasized the speed and agility the project brings to U.S. AI efforts.

Fusion Energy and Drug Development Goals

Wright explained that the supercomputers would help manage plasma stability in fusion energy research. Scientists are working to recreate conditions similar to the center of the sun on Earth. The energy secretary believes the computing power will create practical pathways to harness fusion energy within two to three years.

The systems will also support drug discovery by simulating cancer treatments at the molecular level. Wright expressed hope that most cancers could become manageable conditions within five to eight years. The computers will also help manage the U.S. nuclear weapons arsenal.

The second supercomputer, Discovery, will launch in 2029. It will use AMD’s MI430 series chips designed for high-performance computing. Oak Ridge National Laboratory, Hewlett Packard Enterprise, and AMD are designing this system.

The MI430 represents a special variant that combines traditional supercomputing features with AI application capabilities. Streiffer expects large computational gains but could not predict exact performance increases. Discovery is scheduled for delivery in 2028 with full operations starting in 2029.

Separate Quantum Computing Breakthrough

IBM announced it successfully ran a quantum error-correction algorithm on standard AMD chips. The test reduced noise and ran faster than expected. The company’s research team confirmed the algorithm performed ten times faster than the baseline needed for reliable operation.

Using AMD chips made the quantum computing process more affordable and easier to scale. IBM plans to include this method in its roadmap for building a new quantum system called Starling by 2029. The development brings IBM closer to creating a working quantum computer.

Partnership Structure

The Department of Energy will host both supercomputers while private companies provide the machines and capital spending. Both sides will share the computing power according to a DOE official. The agreement marks one of AMD’s biggest U.S. government contracts to date.

Advanced Micro Devices, Inc., AMD

AMD shares rose 2.67% on Monday, closing at $259.67. The announcement came days before AMD’s planned Q3 earnings report scheduled for November 4. The two AMD-based supercomputers are intended to be the first of multiple partnerships between private industry and DOE labs across the country.

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