- In a strategic move, OpenAI has signed a momentous AI chips deal with AMD.
- This involves deployment of 6 gigawatts of AMD GPUs that would benefit the future of AI.
- With this, Sam Altman gets the vote of confidence to buy 160m shares at AMD at 1 cent each.
A major event happened earlier on Monday when OpenAI signed a blockbuster multi-million AI chip deal with AMD, and it’s all about computing. We are talking about a multi-billion-dollar deal between chipmaker AMD and ChatGPT’s parent company OpenAI. This deal also gives Sam Altman the right to buy a major chunk of AMD over the tenure.
OpenAI’s AI chip deal will deploy 6 gigawatts worth of AMD GPUs
AMD signed a deal with Sam Altman’s OpenAI earlier on Monday. This covers deploying 6 gigawatts of GPUs, equivalent to powering five million households in the United States, or comparable to three times the energy production of the Hoover Dam. The deal covers AMD’s Instinct MI450 GPUs powering the first gigawatt, with the work expected to begin in the second half of next year.
The multi-billion dollars AI chips deal allows OpenAI to buy up to 160 million shares of AMD for just 1 cent each over the course of the deal tenure. This is equivalent to 10% of the company, and with the positive vote of confidence, this would make Altman a key decision-maker in this chip deal. AMD, on the other hand, will benefit from the tens of billions of dollars that it would rack up in annual revenue.
Related
OpenAI’s ChatGPT changed how we look at Generative AI, and for good. Now, you would find ChatGPT reaching god-level in terms of performance, and we have other competitors in the business as well, such as Microsoft Copilot and Google Gemini.
A few days ago, Nvidia announced investing $100Bn in OpenAI, further forging an alliance in the field of AI. This makes OpenAI the centerpiece of everything happening around AI that would require an immense amount of GPU performance, and that’s where both Nvidia and AMD are offering their cutting-edge infrastructure to scale.
