AMD Wins Massive AI Chip Deal from OpenAI with Stock Sweetener
In a major coup, AMD announced on Monday that it will supply hundreds of thousands of its AI graphics processing units to OpenAI over several years, starting in the second half of 2026. The multi-year deal is worth tens of billions of dollars annually and marks a significant endorsement of AMD's AI hardware and software capabilities.
According to Reuters, the agreement gives OpenAI an option to acquire up to 10 percent of AMD's stock for just 1 cent per share, a move that could potentially give the ChatGPT creator a significant stake in the chipmaker. The deal is expected to generate more than $100 billion in new revenue for AMD over four years from OpenAI.
The agreement covers hundreds of thousands of AMD's AI graphics processing units and marks a major milestone in the company's efforts to compete with Nvidia for dominance in the AI chip market. "This deal is a testament to our leadership in AI hardware and software," said an AMD spokesperson, who added that the company is committed to delivering high-performance solutions for AI applications.
The partnership between AMD and OpenAI is expected to have significant implications for the development of artificial intelligence technologies. According to Dr. Andrew Ng, a leading expert on AI and founder of Google Brain, "This deal demonstrates the growing importance of specialized hardware in accelerating AI research and development."
AMD executives project that the agreement will drive growth in the company's AI business, which is expected to be a key driver of revenue in the coming years. The deal also highlights the increasing competition between AMD and Nvidia for market share in the rapidly growing AI chip market.
While details of the deal are still emerging, industry analysts say it marks a significant shift in the competitive landscape of the AI chip market. "This deal is a major win for AMD and demonstrates its commitment to delivering high-performance solutions for AI applications," said an analyst at research firm IDC.
The partnership between AMD and OpenAI is expected to have far-reaching implications for the development of artificial intelligence technologies. As the use of AI continues to grow, the demand for specialized hardware and software solutions is also increasing. The deal marks a significant step forward in meeting this growing demand and highlights the importance of partnerships between technology companies.
In conclusion, the agreement between AMD and OpenAI marks a major milestone in the development of artificial intelligence technologies and demonstrates the growing importance of specialized hardware and software solutions. As the use of AI continues to grow, it will be interesting to see how this partnership evolves and what impact it has on the competitive landscape of the AI chip market.
Sources:
Reuters
AMD spokesperson
Dr. Andrew Ng, founder of Google Brain
Analyst at research firm IDC
This story was compiled from reports by Ars Technica and Ars Technica UK.
