OpenAI, AMD Strike Deal for AI Boost, AMD Shares Surge
OpenAI has inked a substantial agreement with AMD, marking a significant stride in bolstering computational might for AI advancement. The deal, which could see AMD amass tens of billions of dollars, follows a series of major investments in OpenAI's data centers.
The agreement, announced by OpenAI's CEO Sam Altman, involves the issuance of the first tranche of shares upon the deployment of 1-GW processors. AMD's CFO Jen-Hsun Huang revealed that the company could receive a substantial financial boost from this partnership.
The tech industry is wagering on escalating demand for power-intensive AI tools, with OpenAI's latest deal serving as a testament to this. AMD's stock has already witnessed a notable uptick, closing at $164.67 on October 3 and surging over 33% to $219.8 in the October 6 premarket. This news arrives in the wake of Nvidia's $100 billion investment program in OpenAI, which encompasses data centers and 10-GW processors, announced by Nvidia's founder and CEO Jensen Huang.
The agreement with AMD is structured such that OpenAI could secure up to 160 million shares of AMD, contingent on attaining certain milestones.
This deal between OpenAI and AMD underscores a significant investment in AI's computational horizon. With AMD's stock already soaring and the potential for tens of billions in revenue, the tech industry's bet on AI's burgeoning demand appears to be paying off.
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