AMD, OpenAI Team Up for $10B+ Deal, Boosting AMD's AI Chip Market Presence
AMD and OpenAI have announced a strategic partnership, with AMD set to install 6 gigawatts of AMD GPUs for OpenAI, starting with 1 gigawatt in late 2026. This deal is expected to generate a significant revenue stream for AMD.
The partnership, which is projected to reach a revenue in the double-digit billion dollar range, is a major boost for AMD. AMD's CFO Jean Hu described it as a 'zig billion' dollar deal, reflecting its high value. This deal also includes an option for OpenAI to purchase up to 160 million shares of AMD stock, around a 10% stake.
AMD's rise in the AI chip market has been impressive. Since 2023, it has become a significant player, and this deal serves as a strong endorsement. AMD's stock has risen 154% since the start of the AI era, although it's still behind Nvidia's 1,180% rise. The global market for generative AI is projected to reach $15.7 trillion annually by 2030, indicating a promising future for AMD and OpenAI's partnership.
AMD will work with OpenAI to develop future AI chips optimized for AI applications, further cementing their position in the AI chip market. The first tranche of shares will vest upon the completion of the first gigawatt GPU deployment, marking a significant milestone in this strategic partnership.
Read also:
- HLC Approves ₹4,645.60 Crore for Flood Recovery and Wetland Rejuvenation in Nine States
- Crooked House Pub's Demolition: Council Orders Rebuild, Debate on Historic Building Protections
- Shaping India's Economic Progression: Readying the Financial System for Tomorrow
- Ethiopia's Grand Dam: 15,000 Lives Lost, Water Concerns Unresolved
