OpenAI Seals Multibillion-Dollar Chip Deal with AMD, Securing 10% Equity Stake
In a landmark partnership that catapulted AMD shares by a staggering 26%, OpenAI has unveiled a multibillion-dollar chip deal. This monumental agreement could potentially grant the ChatGPT creator a 10% stake in the renowned semiconductor company. The deal stipulates that OpenAI will deploy a whopping 6 gigawatts of AMD’s Instinct graphics processing units over a span of several years. The initial rollout of 1 gigawatt is slated for the latter half of the upcoming year.
This strategic move aids OpenAI in diminishing its dependency on single vendors, simultaneously positioning AMD as a formidable contender in the AI chip market, rubbing shoulders with Nvidia. “AMD’s leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster,” stated OpenAI CEO Sam Altman. Even Nvidia CEO Jensen Huang expressed astonishment at AMD’s readiness to offer such a substantial equity stake prior to the technology’s development.
Source: CNBC