Archive — JP — japantimes
OpenAI signs multibillion dollar chip deal with AMD
OpenAI has entered a multiyear, multibillion dollar partnership with AMD to develop AI data centers, aiming to secure high levels of computing power for generative AI applications. AMD anticipates tens of billions in revenue from this deal, with its share price increasing by 35% following the announcement.
Key points
- OpenAI signed a partnership with AMD for multi-year chip supply.
- The partnership aims to develop AI data centers for generative AI.
- AMD expects tens of billions of dollars in new revenue over five years.
- AMD will deliver six gigawatts worth of chips to OpenAI.
- AMD's share price surged by 35% at market opening post-announcement.
Why it matters
- This partnership reflects increasing investments in AI infrastructure amidst the growing demand for generative AI technologies.
- Historically, AMD's and NVIDIA's advancements in graphics processing units (GPUs) have coincided with AI advancements.
- The trend of tech companies securing chip supply deals indicates heightened competition in AI development as seen with similar partnerships.
This deal underscores the accelerating race for AI capabilities, highlighting AMD's significant role and the growing investment landscape for generative AI technology.