Instead, it'll lead to entire GPU families being scrapped to make way for AI chips.

Extreme Tech found three sources for the rumours, all of whom have said AMD's next generation of GPUs will consist of midrange GPUs. AMD has done this before in 2016 when it announced its Polaris family of GPUs, which topped out with the midrange RX 480 GPU.

It then followed that up with the warmed-over RX 580. People wondered why AMD didn't take on Nvidia on the high-end at the time, and it seems even stranger to repeat this strategy in 2024.

The sources told reliable leaker Kepler on Twitter/X that RDNA 4 will not feature any high-end GPUs. Instead, the company will reportedly prioritise its allocation of wafers from TSMC to GPGPU and FPGA products, according to a follow-on report from Bits and Chips on Twitter.

Basically, AMD is diverting limited resources to markets with high demand and even higher margins, and in the immediate future, that's enterprise and AI markets.

If the rumour holds, the existing RX 7900 XTX will remain the flagship AMD GPU until RDNA 5 arrives sometime in 2026 or beyond. In the meantime, AMD will allocate its future wafers from TSMC to its real money makers instead of using them for high-end GPUs.

This follows Nvidia’s cunning plan. Nvidia is making up to 1,000 per cent profit on every H100 accelerator it sells.