"It's a day that ends in "y," which means OpenAI is cutting another deal for more compute power. The high-profile startup announced a multi-billion-dollar partnership with AI chipmaker AMD as part of OpenAI's ongoing quest to accumulate as much AI infrastructure as possible. For AMD, it's a huge win in its fight to gain ground against Nvidia, the dominant player in the space. With its stock surging almost 40% on news of the deal, AMD investors are surely cheering the move. (Fun fact: Nvidia CEO Jensen Huang and AMD CEO Lisa Su are actually related! You can read more about Su .)"
"Still, as BI's Ellen Thomas smartly points out, there is a key piece of the AI puzzle that's missing. OpenAI's massive collection of computing power is useless unless it has the electricity to power it. The OpenAI-AMD deal also raises a question: When is enough enough? The mad dash among tech giants to secure AI infrastructure has created the kind of spending spree rarely seen in US history. And it all comes without a clear sign of significant revenue flowing in, writes BI's Dakin Campbell."
OpenAI announced a multi-billion-dollar partnership with AMD to secure additional AI compute capacity, joining prior large deals with Nvidia and Oracle. AMD gained market momentum as its stock jumped nearly 40% on the news, reflecting competitive pressure against Nvidia. The rapid accumulation of computing infrastructure raises questions about when hardware acquisition becomes excessive amid limited immediate revenue. A critical constraint remains power: enormous compute fleets require large, reliable electricity supplies. Industry motivations include fear of missing out, driving unprecedented spending on AI infrastructure despite unresolved sustainability and operational challenges.
Read at Business Insider
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