OpenAI signs another chip deal, this time with AMD
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OpenAI signs another chip deal, this time with AMD
"In order to "further align" the two companies' strategic interests, AMD has given OpenAI the ability to buy up to 160 million shares at a low fixed price, which will vest as the pair hit key milestones, including that first 1GW deployment but also share price targets. That could see OpenAI taking a 10% stake in AMD. "This partnership is a major step in building the compute capacity needed to realize AI's full potential," said Sam Altman, co-founder and CEO of OpenAI."
"The deal follows a similarly massive partnership worth $100bn with rival chipmaker Nvidia. While OpenAI has used AMD chips before, the deal is a big one for a chipmaker that until now has "trailed" rival Nvidia in the AI boom, noted one analyst. "AMD has really trailed Nvidia for quite some time," Leah Bennett, chief investment strategist at Concurrent Asset Management, told Reuters. "So I think it helps validate their technology.""
OpenAI committed to using 6 gigawatts of AMD GPUs in a multi-year, multi-generation agreement that begins with a one-gigawatt deployment in the second half of next year using AMD's Instinct MI450 Series. AMD granted OpenAI the option to buy up to 160 million shares at a low fixed price, vesting as the companies meet milestones including the initial 1GW deployment and share price targets, potentially resulting in a roughly 10% OpenAI stake. The partnership deepens AMD and OpenAI hardware and software collaboration, aims to enable very large-scale AI deployments, and drove a near 30% jump in AMD stock.
Read at IT Pro
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