OpenAI has signed a multibillion-dollar deal with AMD to secure access to hundreds of thousands of AI chips – a crucial move as demand for computing power continues to rise. The agreement also gives OpenAI the option to acquire up to 10% of AMD and buy 160 million shares at just one cent each.
Following the announcement, AMD’s stock price jumped over 30%, boosting its market value by $80 billion. The deal could generate over $100 billion in revenue for AMD over the next four years. For OpenAI, it’s a key milestone on the path to developing artificial general intelligence.