"AMD has sold 6 gigawatts and $90 billion worth of AI capacity to OpenAI. In addition, the arrangement sets up the ChatGPT maker to purchase up to 10 percent of AMD's shares. The deal inspires extraordinary confidence in Nvidia's biggest competitor. Why? First, OpenAI will use a single gigawatt of Instinct MI450 GPUs for AI calculations. As it happens, this chip design will not be released for another year."
"Outside of the technicalities, the partnership has already turned out to represent rocket fuel for AMD's stock price. At the time of writing, the chip manufacturer's market cap has shot up by almost 24 percent in a single day. There is certainly confidence in the continuing explosion in demand for AI capacity, emphatically so even. Why AMD? It'sclear that OpenAI intends to draw from multiple silicon sources. Exactly two weeks ago, CEO Sam Altman's company announced that it would purchase 10 gigawatts of Nvidia systems."
"At any rate, the relationship between OpenAI and Nvidia is different from that between OpenAI and AMD. In one scenario, Nvidia is effectively buying pieces of its own customer if said customer continues to be a profilic one, while AMD is financially motivated to deliver high-performance processors and is the recipient of further investment. In other words, the better AMD performs as a rival to Nvidia, the more it is rewarded by OpenAI for doing so."
OpenAI purchased 6 gigawatts and $90 billion of AMD AI capacity and may acquire up to 10% of AMD shares. OpenAI will deploy one gigawatt of Instinct MI450 GPUs for AI calculations, a chip not due for release for another year, and the rest will include processors not yet on AMD roadmaps beyond the MI500 series confirmed after 2026. The announcement triggered an almost 24% one-day jump in AMD market capitalization. OpenAI also plans 10 gigawatts of Nvidia systems with Nvidia investing up to $100 billion. The vendor relationships differ: Nvidia takes equity; AMD gains performance incentives.
Read at Techzine Global
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