OpenAI hands AMD deal tens of billions 🍋

OpenAI joins AMD's hand to create a giant AI data center. The deal is worth tens of billions of dollars, or perhaps even more than $60 billion, to support the rapidly growing demand for AI. OpenAI will use AMD's graphics chips, combining over 6 gigawatts of massive computing power for the company's new AI infrastructure.

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At the start of the project, OpenAI will begin installing a new generation of 1 gigawatt AMD Instinct MI450 chips by the second half of 2026, which will be the centerpiece of the new AI data center. OpenAI will begin paying AMD chip money from 2025 to allow the company to prepare to manufacture and deliver MI450 chips on schedule next year. AMD CEO Lisa Su revealed that the deal will generate "tens of billions of dollars" in revenue for the company within the next five years.

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AMD also privileges OpenAI to buy up to 160 million shares of the company, or about 10% of the total, at a price of only 1 cent each, but it will be granted one part at a time according to the progress of the project, and depending on the price of AMD shares, it must reach a set target first.

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After the news was announced, AMD shares immediately jumped more than 30% to $200 in the pre-market because investors saw the deal as a milestone that helped AMD compete fully with NVIDIA and gave OpenAI more options to build a global AI infrastructure in the future.

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Source: videocardz

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