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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SoftBank (9984.T) has approved a second installment of $22.5 billion towards its $30 billion investment in OpenAI, according to a report by The Information on Saturday.
The relationship between OpenAI and NVIDIA represents one of the most consequential partnerships in the artificial intelligence (AI) industry, a symbiotic alliance that has evolved from humble beginnings to a £73 billion strategic collaboration that could reshape the future of computing.
Semiconductor shares from Asia to Europe rose sharply on Tuesday after Nvidia unveiled a $100 billion partnership with OpenAI to build massive Artificial Intelligence (AI) systems requiring millions of processors.
Chipmaker Nvidia will invest up to $100 billion in ChatGPT owner OpenAI and provide it with data centre chips, the companies announced Monday, forming a major partnership in the global artificial intelligence race.
At least 69 people have died and almost 150 injured following a powerful 6.9-magnitude earthquake off the coast of Cebu City in the central Visayas region of the Philippines, officials said, making it one of the country’s deadliest disasters this year.
A tsunami threat was issued in Chile after a magnitude 7.8 earthquake struck the Drake Passage on Friday. The epicenter was located 135 miles south of Puerto Williams on the north coast of Navarino Island.
The war in Ukraine has reached a strategic impasse, and it seems that the conflict will not be solved by military means. This creates a path toward one of two alternatives: either a “frozen” phase that can last indefinitely or a quest for a durable political regulation.
A shooting in Nice, southeastern France, left two people dead and five injured on Friday, authorities said.
Snapchat will start charging users who store more than 5GB of photos and videos in its Memories feature, prompting backlash from long-time users.
A 13-year-old boy in central Florida has been arrested after typing a violent question into ChatGPT during class, prompting an emergency police response when school monitoring software flagged the message in real time.
Nokia chief executive Justin Hotard said artificial intelligence is fuelling a structural growth cycle similar to the internet expansion of the 1990s, but rejected fears that investor enthusiasm has reached unsustainable levels.
NASA has announced that it will reopen bidding for its flagship U.S. moon landing contract, citing mounting delays in Elon Musk’s SpaceX Starship lunar lander project.
China has accused the United States of stealing sensitive data and infiltrating its National Time Service Centre, warning that such breaches could have disrupted communications, financial systems, power supplies, and the international standard time network.
Chinese tech giants, including Alibaba-backed Ant Group (688688.SS) and e-commerce company JD.com have halted plans to issue stablecoins in Hong Kong after the government raised concerns about the increasing influence of privately controlled currencies, the Financial Times reported on Saturday.
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