Mentioned:
AMD has just landed of their largest deals in history for GPUs. And Sam Altman’s OpenAI is behind it.
What’s happening:
- AMD (NASDAQ: AMD) and OpenAI have entered into a new deal to deploy 6 gigawatts of AMD’s Instinct GPUs to power artificial intelligence workloads
By the numbers:
- OpenAI has publicly stated they are looking to deploy 1 gigawatt of AMD’s Instinct GPU’s within 18 months
- OpenAI will also receive warrants in AMD to acquire up to 10% of AMD’s common stock which will vest based on deployment milestones and AMD’s share price performance
- The new deal is widely expected to generate more than $10B USD of new annual revenue for AMD
Why it matters:
- This is one of the single largest deals ever that AMD has done with one company to purchase GPUs
Going deeper:
- AMD and OpenAI will also continue to collaborate on technical improvements for new GPUs and software being developed by AMD that can accelerate the rate of innovation in training OpenAI’s new artificial intelligence models
- OpenAI has been making a flurry of new moves recently to expand their access to high performance computing and leading edge GPUs lately, including increasing the size of their existing deal with CoreWeave (NASDAQ: CRWV) and landing a $100B USD strategic investment from Nvidia (NASDAQ: NVDA) that is deployed in stages as OpenAI brings new data centres into full scale operation
