OpenAI to purchase AMD chips worth billions of dollars.

OpenAI Agrees to Buy ‘Tens of Billions’ Worth of AMD Chips

In a groundbreaking move, OpenAI has forged a partnership with AMD to secure “tens of billions” of dollars worth of AMD chips. This agreement comes shortly after NVIDIA’s announcement of a $100 billion investment in OpenAI. The deal between OpenAI and AMD aims to develop six gigawatts of AI infrastructure, positioning AMD as a key player in the burgeoning AI sector.

OpenAI stated that AMD will serve as a “core strategic compute partner” to drive large-scale technology deployments. The collaboration will primarily utilize AMD’s Instinct GPUs, with plans to initiate the first gigawatt of Instinct MI450 GPUs in the latter half of 2026. Sam Altman, CEO of OpenAI, emphasized that AMD’s high-performance chip technology is essential for accelerating the development of advanced AI.

Additionally, the agreement allows OpenAI to buy 160 million AMD shares at just one cent each, with vesting tied to the achievement of specific milestones, including the deployment of the first gigawatt of chips. Ultimately, this could grant OpenAI a 10 percent stake in AMD.

The surge of collaborations among major AI companies shows a trend toward robust partnerships. OpenAI’s ongoing projects include their arrangement with NVIDIA, which focuses on building AI data centers powered by NVIDIA’s chips. These companies are setting the stage for rapid advancements in artificial intelligence and technology as they invest heavily in hardware and infrastructure.

As these partnerships evolve, the AI landscape is set to become increasingly competitive. What are your thoughts on OpenAI’s deal with AMD? Share your insights in the comments!

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