"OpenAI and the chipmaker AMD announced on Monday that they had signed a multibillion-dollar chip deal that would also give the ChatGPT creator the option to buy a large stake in the chipmaker. The deal offers OpenAI an opportunity to buy 10% in AMD and marks a major vote of confidence in the company's AI chips and software. Shares of AMD surged more than 30% and added about $80bn to its market capitalization after the announcement."
"Monday's agreement covers the deployment of hundreds of thousands of AMD's AI chips, or graphics processing units (GPUs), equivalent to six gigawatts, over several years beginning in the second half of 2026. This is roughly equivalent to the energy needs of 5m US households, or the electricity produced yearly by the Hoover Dam three times over. AMD said OpenAI would build a one-gigawatt facility based on its forthcoming MI450 series of chips beginning next year."
OpenAI signed a multibillion-dollar agreement with AMD to deploy hundreds of thousands of AMD AI GPUs, equivalent to six gigawatts, beginning in the second half of 2026. The deal gives OpenAI the option to acquire up to 10% of AMD through a warrant permitting purchase of up to 160 million shares at one cent each. AMD expects the arrangement to generate tens of billions of dollars in annual revenue and called the deal transformative for the industry. AMD shares surged over 30%, adding about $80 billion to market capitalization after the announcement. The agreement includes OpenAI building a one-gigawatt facility based on AMD’s forthcoming MI450 series starting next year.
Read at www.theguardian.com
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