"Under the terms of the deal, OpenAI will buy the latest version of the company's high performance graphics chips, the Instinct MI450, which is expected to debut next year. The agreement calls for supplying 6 gigawatts of computing power for OpenAI's next generation AI infrastructure, with the first batch of chips worth 1 gigawatt to be deployed in the second half of 2026."
"OpenAI will also get the option to buy as much as a 10% stake in AMD, according to a joint statement announcing the deal. AMD also issued OpenAI with a warrant allowing the AI company to buy up to 160 million shares of AMD's common stock. That amounts to about 10% of the chipmaker based on AMD's 1.6 billion outstanding shares. The warrant will vest based on two milestones tied to the amount of computing power deployed, as well as unspecified share-price targets."
"This partnership is a major step in building the compute capacity needed to realize AI's full potential, OpenAI CEO Sam Altman said in a news release. AMD's leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster. The deal is a boost for Santa Clara, Calif.-based AMD, which has been left behind by rival Nvidia. But it also hints at OpenAI's desire to diversify its supply chain away from Nvidia's dominance."
OpenAI agreed to buy AMD's forthcoming Instinct MI450 high-performance graphics chips and received a warrant to purchase up to 160 million AMD shares, roughly 10% of outstanding stock. The deal commits AMD to supplying 6 gigawatts of compute for OpenAI's next-generation AI infrastructure, with an initial 1-gigawatt deployment planned for the second half of 2026. The warrant vests on two deployment milestones and unspecified share-price targets. AMD's shares surged 25% on the news while Nvidia shares dipped slightly. The partnership advances OpenAI's efforts to expand compute capacity and diversify suppliers beyond Nvidia.
Read at www.mercurynews.com
Unable to calculate read time
Collection
[
|
...
]