What is the story about?
What's Happening?
OpenAI has entered into a partnership with semiconductor maker AMD to supply chips for building AI infrastructure. As part of the agreement, OpenAI will have the option to purchase up to a 10% stake in AMD. The deal involves OpenAI acquiring AMD's latest high-performance graphics chips, the Instinct MI450, expected to debut next year. The partnership aims to provide 6 gigawatts of computing power for OpenAI's next-generation AI infrastructure, with the first batch of chips worth 1 gigawatt to be deployed in the second half of 2026.
Why It's Important?
This partnership marks a significant step for OpenAI in expanding its AI computing resources, crucial for meeting the growing demand for AI applications. The collaboration with AMD allows OpenAI to diversify its supply chain, reducing reliance on Nvidia, which has dominated the AI chip market. The deal is also a boost for AMD, providing an opportunity to compete more effectively against Nvidia. The increased computing capacity is expected to accelerate AI advancements, potentially benefiting various industries reliant on AI technology.
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