OpenAI Invests in AMD, Takes Up to 10% Stake in Chipmaker
OpenAI, the $500 billion AI company, has invested in AMD, taking up to a 10% stake in the chipmaker. The move follows a multi-year agreement for OpenAI to source up to six gigawatts of AI chips from AMD, drawing AMD shares to surge over 30%.
The collaboration, facilitated by Nilesh Christopher, will see OpenAI deploy the first gigawatt of AMD Instinct MI450 GPUs in late 2026. This deal is expected to generate tens of billions in revenue for AMD. The agreement includes stock options for up to 160 million AMD shares, which could give OpenAI a 10% ownership stake in AMD.
Currently, Nvidia dominates the AI chip market with 70% of sales. However, AMD's partnership with OpenAI, a company with 700 million weekly active users, could shift this balance. This investment comes as global AI infrastructure spending is projected to reach $375 billion in 2025.
OpenAI's commitment to AMD, with a multiyear commitment and vesting tied to specific milestones, signals a significant vote of confidence in AMD's AI chip capabilities. As OpenAI continues to grow, this partnership could drive AMD's revenue and market share in the AI chip market.
Read also:
- Unveiling the Less-Discussed Disadvantages of Buds - Revealing the Silent Story
- Grid Risk Evaluation Strategy By NERC Outlined, Focusing on Potential Threats from Data Centers
- Rapid Expansion in Organic Rice Protein Market Projected at 15.6% Through 2034
- Vantor & Lanteris Fuel US Intelligence with Innovative Tech
