AMD hops on the agentic bandwagon at Advancing AI 2026
Chipmaker walks a fine line on tokenomics, declares the future as hybrid and boosts its CPUs’ TCO credentials
Tokenomics has been a theme of many tech conferences this year and AMD has joined in the fun at this year’s Advancing AI conference.
At the heart of the tokenomics conversation is the move from chatbots and simple inference towards agentic AI. This is a real trend as noted by Digital Ocean and McKinsey and one that OEMs have locked onto hard.
While in previous years enterprise hardware vendors would wax lyrical about the importance of training LLMs on your own data (and how their hardware can help), if you listen for that chatter now you will hear nothing but crickets.
AI agents offer a range of benefits for enterprises – according to Digital Ocean’s research, 53% of the over 1,000 IT decision makers it spoke to saw productivity and time saving gains, while 44% said it had created new business opportunities.
There are also drawbacks, however, and one of the most apparent is the increased use of tokens, which leads to higher bills.
Whereas an individual using prompts to interact with an AI chatbot may use a few hundred tokens, agents can use up thousands.
As McKinsey explains: “Agentic tasks can consume roughly 1,000 times more tokens than code reasoning (single-turn problem-solving without tool interaction) or chat tasks (multi-turn dialogue about a coding problem).”
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“The expensive part is not the first answer generated but the checking, repairing, and reverifying that follows,” the report continues. “About 60% of an agentic task’s costs, in fact, are tied to refining answers.”
This fact, and companies baulking at the related costs, hasn’t gone unnoticed among enterprise IT vendors, which are proposing their on-premises services as a way round this.
For AMD, this is a tricky path to tread, given it counts both traditional enterprise vendors like Dell, HPE, Lenovo, and Supermicro and public cloud-based services from OpenAI and Anthropic among its customers.
AMD’s performance focus
Michael Nordquist, CVP of product marketing for AMD’s computing and graphics group, diplomatically said that when it comes to considering the impact of tokenomics “it’s not all one way or all the other, it’s going to be hybrid. For some things local models work great, for some things you’re going to want that frontier model available for agent behaviour.”
From a practical perspective, AMD’s answer to this quandary has been to focus on how its own chips can (theoretically) reduce token-related costs, without taking sides on the public/on-premises debate.
“The theme [at Advancing AI] is really performance is the way that we can deliver the best economic value to our customers,” said Andrew Dieckman, CVP and GM for data center GPU at AMD.
“It’s the strongest dial that we have on the dashboard, so to speak,” Dieckman said, “so we’re very focused on that and then making sure that conveys to favorable economics for our customers because the cost of tokens as the world moves to inference is so important.”
Part of that focus is the company’s MI455X GPUs, announced at Advancing AI 2026 during AMD CEO Lisa Su’s keynote speech.
According to AMD, the MI455X has up to 18x lower token cost than its predecessor, the MI355X, while maintaining up to 34x higher token throughput.
“That delivers, really, the ability to serve more users with faster response times and significantly better economics,” Dieckman said.
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Jane McCallion is Managing Editor of ITPro and ChannelPro, specializing in data centers, enterprise IT infrastructure, and cybersecurity. Before becoming Managing Editor, she held the role of Deputy Editor and, prior to that, Features Editor, managing a pool of freelance and internal writers, while continuing to specialize in enterprise IT infrastructure, and business strategy.
Prior to joining ITPro, Jane was a freelance business journalist writing as both Jane McCallion and Jane Bordenave for titles such as European CEO, World Finance, and Business Excellence Magazine.
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