United States chipmaker AMD will supply artificial intelligence chips to OpenAI in a multi-year agreement that could generate tens of billions of dollars in annual revenue and give the ChatGPT maker the option to acquire up to 10% of the company.
Shares of AMD surged more than 34% on Monday following the announcement, marking their biggest one-day gain in over nine years and adding roughly $80 billion to the company’s market value.
The deal underscores the AI sector’s soaring demand for computing power as companies race to develop systems that match or surpass human intelligence.
“We view this deal as transformative — not just for AMD, but for the industry’s dynamics,” said Forrest Norrod, AMD’s executive vice president.
The agreement deepens ties between OpenAI and one of Nvidia’s key rivals, following Nvidia’s own major investments in the company.
Analysts say the move is a strong vote of confidence in AMD’s chips and software, though it is unlikely to threaten Nvidia’s market dominance.
AMD expects the partnership to bring in tens of billions annually and more than $100 billion in new revenue over four years from OpenAI and other clients. The company is forecast to post $32.78 billion in revenue this year, compared with Nvidia’s projected $206.26 billion.
“AMD has really trailed Nvidia for quite some time, so this helps validate their technology,” said Leah Bennett, chief investment strategist at Concurrent Asset Management. Nvidia shares slipped over 1% after the news.
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Start your day informed with the AnewZ Morning Brief. Here are the top stories for the 29th of April, covering the latest developments you need to know.
Elon Musk took the stand on Tuesday (28 April) at a high-stakes trial over the future of OpenAI, casting his lawsuit against the ChatGPT maker as a defence of charitable giving.
A pivotal trial that could shape the governance of artificial intelligence begins Tuesday in California, as Elon Musk and Sam Altman face off over OpenAI’s shift to a for-profit model.
France said on Saturday it was considering taking reciprocal measures after Burkina Faso broke off diplomatic relations.
A tanker reported being struck by a projectile in the Strait of Hormuz on Saturday, Britain's maritime security agency said, after the United States and Iran each launched strikes in the worst escalation since they signed their interim peace deal.
Fourteen people were killed on Sunday after a helicopter belonging to Saudi oil giant Aramco crashed in Ras Tanura, according to Saudi state media.
Eleven people were killed when a small plane carrying skydivers crashed near Nancy in eastern France on Sunday, local officials said.
Rescue teams raced on Sunday to find more survivors of the two powerful earthquakes that struck Venezuela this week, with signs of life bringing occasional relief to a grim quest to whittle down a list of tens of thousands missing.
American technology company Snap has launched its first augmented-reality (AR) glasses for consumers, marking a major push into wearable computing as tech firms race to redefine personal devices in the AI era.
The Canadian government has introduced a digital safety bill that would ban children under the age of 16 from using social media, unless platforms meet specific safety standards.
NASA has named three American astronauts and one Italian astronaut to fly on its Artemis III mission, a major orbital test planned for late next year that will evaluate lunar landing vehicles developed by SpaceX and Blue Origin.
China will send an astronaut to its space station on Sunday for a one-year mission, the longest duration for the country so far. The mission will help study long-duration human physiology in space as China works toward a crewed Moon landing by 2030.
Anxiety over artificial intelligence is hardening among young workers as executives promote faster adoption and companies point to automation in fresh job cuts.
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