AMD Signs Multi-Year AI Chip Supply Deal with OpenAI, Including Option for 10% Stake
By
chillax
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Summary
AMD has signed a multi-year deal to supply artificial intelligence chips to OpenAI, which could generate tens of billions in annual revenue for AMD. The agreement includes an option for OpenAI to purchase up to 10% of AMD's stock. The deal caused AMD shares to surge 34% to a one-year high, adding $80 billion to its market capitalization. This partnership reflects the AI industry's massive demand for computing power as companies race to develop advanced AI technology.
Key quotes
· 3 pulled"We view this deal as certainly transformative, not just for AMD, but for the dynamics of the industry," AMD executive vice president Forrest Norrod told Reuters on Sunday.
"The latest deal, among a string of investment commitments, is a testament to OpenAI and the broader AI industry's voracious appetite for computing power as companies race toward developing AI technology that meets or exceeds human intelligence."
"AMD said on Monday it will supply artificial intelligence chips to OpenAI in a multi-year deal that would bring in tens of billions of dollars in annual revenue and give the ChatGPT creator the option to buy up to roughly 10% of the chipmaker."
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