Advanced Micro Devices (AMD) has signed a multi-year agreement to supply artificial intelligence chips to OpenAI in a deal that could reshape the power balance across the semiconductor industry.
The pact will give the ChatGPT creator the option to purchase up to about 10% of the Nvidia rival, along with access to hundreds of thousands of AMD’s next-generation graphics processors, totaling six gigawatts of compute capacity—enough to power several million US homes, reports Reuters.
AMD says OpenAI also plans to construct a one-gigawatt data center based on its forthcoming MI450 series chips starting next year. The chipmaker expects to begin recognizing revenue once construction begins and forecasts more than $100 billion in new sales over four years from OpenAI and other AI clients.
Shares of AMD surged more than 34% following the announcement, adding about $80 billion to its market value and marking its biggest one-day gain in nearly a decade.
While it’s not clear how OpenAI will fund the massive deal, OpenAI president Greg Brockman says the ChatGPT creator is aggressively searching for new sources of capital.
In a new Bloomberg interview, he says the company is examining every financing avenue available as it pushes to scale faster than competitors.
“The way that I would look at this is that AI revenue is growing faster than I think almost any product in history. Ultimately, at the end of the day, the reason this compute power is so important, so worthwhile for everyone to build, is because the revenue ultimately will be there.
Now, as a company that is trying to move as fast as we can, we look at everything. We look at equity, debt. We look at trying to find creative ways of financing all of this.”
The news comes as OpenAI CEO Sam Altman has embarked on a fresh global campaign to secure financing and supply-chain partners capable of meeting the company’s explosive demand for computing power. In recent weeks, Altman has traveled across Asia — visiting Taiwan, South Korea, and Japan — and is now preparing to meet investors in the United Arab Emirates.
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