OpenAI and AMD Forge a Groundbreaking Multi-Billion Dollar AI Chip Partnership
In a landmark agreement that has sent ripples through the semiconductor industry, OpenAI and Advanced Micro Devices (AMD) have announced a multibillion-dollar partnership. This deal could potentially result in the ChatGPT creator acquiring up to a 10% stake in the chip manufacturer. The arrangement includes OpenAI deploying 6 gigawatts of AMD’s Instinct GPUs over multiple years, with the initial 1-gigawatt rollout scheduled for 2026.
Following the announcement, AMD’s stock soared by 43% this week, adding a staggering $63 billion to the company’s market valuation. This deal places AMD as a key strategic partner to OpenAI, marking one of the most significant GPU deployment agreements in the AI industry to date. “We have to do this,” stated OpenAI President Greg Brockman in an interview with CNBC, highlighting the crucial need for securing compute capacity for AI development.
The partnership forms part of OpenAI’s wider infrastructure expansion strategy. Over the course of this year, the company has signed deals worth approximately $1 trillion with various technology partners. These include Nvidia, Oracle, and SoftBank, all part of the Stargate project.
Source: www.cnbc.com