OpenAI just fired the loudest shot yet in Silicon Valley\u2019s artificial intelligence hardware war.<\/p>\n
The ChatGPT maker announced on Monday that it has signed a sweeping multi-year partnership with chipmaker AMD to supply the processors powering its next-generation AI systems. The tech giant also secured an option to buy up to 10% of AMD itself.<\/p>\n
The move could shift the balance of power in the global AI-chip race, which Nvidia has long dominated.<\/p>\n
\u201cThis partnership is a major step in building the compute capacity needed to realize AI\u2019s full potential,\u201d OpenAI CEO Sam Altman said in a news release<\/a>. \u201cAMD\u2019s leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster.\u201d<\/p>\n Under the agreement, AMD will deliver six gigawatts of AI-optimized compute capacity, starting with an initial one-gigawatt rollout in 2026.<\/p>\n The deal includes access to AMD\u2019s upcoming Instinct MI450 GPUs, designed to rival Nvidia\u2019s Blackwell architecture in efficiency and scalability. OpenAI<\/a>, in turn, received a warrant to purchase as many as 160 million AMD shares, which would become available upon meeting deployment and share-price milestones. The stake could be worth tens of billions of dollars at current valuations.<\/p>\n For AMD, the partnership marks a rare chance to leapfrog into AI relevance<\/a>.<\/p>\n While the company has trailed Nvidia for years in machine-learning hardware, CEO Lisa Su has aggressively invested in AI-specific silicon. The OpenAI endorsement could validate that push \u2014 and Wall Street took notice. AMD shares jumped more than 25% in premarket trading, while Nvidia slipped modestly on the news.<\/p>\n \u201cOur partnership with OpenAI is expected to deliver tens of billions of dollars in revenue for AMD while accelerating OpenAI\u2019s AI infrastructure buildout,\u201d Jean Hu, EVP, CFO, and treasurer at AMD, said in the OpenAI press release. \u201cThis agreement creates significant strategic alignment and shareholder value for both AMD and OpenAI and is expected to be highly accretive to AMD\u2019s non-GAAP earnings-per-share.\u201d<\/p>\n Still, questions loom. AMD\u2019s chips are built by Taiwan\u2019s TSMC, a potential bottleneck if demand outpaces capacity. And while AMD touts performance parity, Nvidia\u2019s software ecosystem remains vastly more mature. Integrating a dual-vendor stack will test OpenAI\u2019s technical agility.<\/p>\n The deal highlights a decisive shift in the AI industry: major players are moving from customers to co-investors in the companies that build their hardware. By tying its computing future directly to AMD\u2019s performance, OpenAI is taking an active hand in reshaping the semiconductor landscape \u2014 not just buying chips, but helping define who makes them.<\/p>\n If the collaboration pays off, the AI world may soon run on more than one kind of silicon \u2014 and Nvidia\u2019s long-unchallenged supremacy could finally meet its match.<\/p>\n OpenAI\u2019s new chip alliance with AMD signals a bold shift in AI infrastructure strategy \u2014 one fueled by its <\/strong>unprecedented $500 billion valuation<\/strong><\/a>.<\/strong><\/p>\n The post OpenAI Strikes Landmark Chip Deal with AMD to Power Next-Gen AI<\/a> appeared first on eWEEK<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" OpenAI just fired the loudest shot yet in Silicon Valley\u2019s artificial intelligence hardware war. The ChatGPT maker announced on Monday that it has signed a sweeping multi-year partnership with chipmaker AMD to supply the processors powering its next-generation AI systems. The tech giant also secured an option to buy up to 10% of AMD itself. […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5209","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/cybersecurityinfocus.com\/index.php?rest_route=\/wp\/v2\/posts\/5209"}],"collection":[{"href":"https:\/\/cybersecurityinfocus.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cybersecurityinfocus.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/cybersecurityinfocus.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5209"}],"version-history":[{"count":0,"href":"https:\/\/cybersecurityinfocus.com\/index.php?rest_route=\/wp\/v2\/posts\/5209\/revisions"}],"wp:attachment":[{"href":"https:\/\/cybersecurityinfocus.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cybersecurityinfocus.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cybersecurityinfocus.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Inside the deal: Billions poured into computing power<\/h2>\n
AMD\u2019s high-stakes comeback moment<\/h2>\n
Redefining the AI arms race<\/h2>\n