AMD teams up with OpenAI to challenge Nvidia’s AI chip dominance

AMD is partnering with OpenAI to supply six gigawatts worthy of processors for AI information centers, a determination that challenges Nvidia’s AI spot marketplace dominance. The five-year statement aims to assistance OpenAI bolster its infrastructure to conscionable increasing computational demands for AI applications similar ChatGPT, starting with a gigawatt deployment of AMD Instinct MI450 GPUs successful the 2nd fractional of 2026, according to AMD’s property release.

The financials of the woody person not been disclosed, but AMD said it expects the statement to present “tens of billions of dollars successful revenue” for the company. AMD’s banal terms is up by 24 percent successful pre-market trading pursuing the concern announcement connected Monday.

“We are thrilled to spouse with OpenAI to present AI compute astatine monolithic scale,” AMD CEO Lisa Su said successful the announcement. “This concern brings the champion of AMD and OpenAI unneurotic to make a existent win-win enabling the world’s astir ambitious AI buildout and advancing the full AI ecosystem.”

The statement follows OpenAI announcing a “strategic partnership” with Nvidia past period that would alteration the ChatGPT-maker to deploy astatine slightest 10 gigawatts of AI datacenters with Nvidia GPUs. The 2 companies person signed a missive of intent, but the woody isn’t finalized, and would besides see Nvidia investing “up to $100 cardinal successful OpenAI.” With Nvidia already starring the AI semiconductor industry, AMD’s woody with OpenAI volition assistance it disrupt its rival’s marketplace dominance.

OpenAI antecedently said that Nvidia volition beryllium a “preferred strategical compute and networking partner” for gathering caller AI datacenters, with AMD comparatively described arsenic a “core strategical compute partner” successful today’s announcement. AMD’s woody gives OpenAI the enactment to person up to 160 cardinal AMD shares, a astir 10 percent involvement successful the company, astatine a cent per share, “as circumstantial milestones are achieved.”

“This concern is simply a large measurement successful gathering the compute capableness needed to recognize AI’s afloat potential,” said OpenAI CEO Sam Altman. “AMD’s enactment successful high-performance chips volition alteration america to accelerate advancement and bring the benefits of precocious AI to everyone faster.”

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