AMD and OpenAI Forge Landmark AI Chip Alliance
AMD will provide AI chips to OpenAI under a multi-year agreement, potentially generating billions in revenue. The arrangement allows OpenAI to acquire up to 10% of AMD, highlighting AMD's growing influence in AI technology. OpenAI aims to enhance its AI infrastructure, with AMD deploying vast quantities of AI chips.
AMD has announced a groundbreaking multi-year deal to supply artificial intelligence chips to OpenAI, the creator of ChatGPT. The partnership could generate tens of billions in revenue annually and allow OpenAI to purchase up to 10% of AMD, causing the chipmaker's shares to skyrocket by over 34%.
This strategic collaboration underscores the burgeoning demand for computing power across the AI industry, as companies strive to develop technologies with human-level intelligence. AMD's executive vice president, Forrest Norrod, described the deal as transformative for both AMD and the broader industry dynamics.
Beginning in 2026, AMD will deploy hundreds of thousands of AI chips over several years. This significant energy deployment is comparable to the electricity requirements of 5 million U.S. households. OpenAI plans to construct a one-gigawatt facility using AMD's MI450 series chips, starting next year. The deal forecasts substantial revenue growth for AMD, exceeding $100 billion over four years.
(With inputs from agencies.)
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