Advanced Micro Devices (AMD)
saw its share price jump by over 30% in pre-market trading after
announcing a landmark deal to supply six gigawatts of GPUs to OpenAI,
the maker of ChatGPT.
In a joint statement, both companies said AMD
will provide the high-performance graphics processing units essential
for powering and training advanced artificial intelligence models.
The partnership marks OpenAI’s move to diversify
its semiconductor supply chain, reducing reliance on Nvidia, which has
long dominated the AI chip market.
The announcement follows a $100 billion deal
OpenAI struck with Nvidia in late September to boost its generative AI
infrastructure.
Under the new agreement, AMD will also issue 160
million warrants to OpenAI — financial instruments that could be converted
into AMD shares under certain conditions.
Industry analysts say AMD faces growing competition
not only from Nvidia, but also from Huawei, Amazon, and Google,
which are all ramping up in-house AI chip production.
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