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.
Counting is underway in Armenia's elections. The results of the vote are set to determine the political direction of the country of three million people for the next few years. Prime Minister Nikol Pashinyan is hoping to fend off challenges from several pro-Russia candidates to secure a third term.
Armenian Prime Minister Nikol Pashinyan's party is on course for victory, with Armenian media reporting that the country's Central Election Commission has completed the vote count in the parliamentary elections. An official announcement is still expected.
Armenian authorities arrested six candidates from the pro-Russian Strong Armenia bloc on Saturday, one day before voters were due to take part in parliamentary elections.
Azerbaijan's Foreign Ministry has confirmed the number of casualties its citizens suffered as a result of the 5 June drone attacks on the cargo ships Natra and Zircon in the Sea of Azov. In a statement, it said four Azerbaijani citizens were killed and four others were injured.
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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.
Hackers are increasingly using artificial intelligence to detect software vulnerabilities, reducing the time organisations have to respond to cyber threats, Verizon said in its annual data breach report.
China has launched the world’s first experiment to study how artificial human embryos develop in space, marking a major step in understanding whether humans could one day reproduce beyond Earth.
Japanese filmmaker Koji Fukada has said that the use of artificial intelligence (AI) to “jump straight to the result” risks undermining the purpose of art, which he believes should be rooted in self-expression and a deeper understanding of the world.
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