Main PageAMD Shares Soar 30% After Announcing Multi-Billion Dollar Deal With OpenAI
OpenAI and Advanced Micro Devices have signed an agreement under which Sam Altman's company may acquire a 10% stake in the chipmaker. After the publication of this news, AMD shares instantly rose by more than 30%. Currently, the development of OpenAI is slowed down due to a lack of computing power.
As part of this collaboration, AMD has granted OpenAI the right to purchase up to 160 million shares of AMD common stock, with milestones tied to both the volume of deployment and the price of AMD shares. OpenAI will be able to acquire about 10% of AMD shares, based on the current number of shares issued. An OpenAI spokesman said the deal was worth "billions of dollars," but declined to disclose a specific amount.
In a joint press release, the company said that OpenAI will massively deploy several generations of AMD Instinct GPUs in OpenAI's data centers with a total capacity of 6 GW over the next few years. At the first stage, in the second half of 2026, specialized AMD chips with a total capacity of 1 GW should be deployed? after that, OpenAI will be able to buy some of the allocated shares. Subsequent tranches will be unlocked as OpenAI's systems scale and key technical and commercial goals are achieved.
"We have to do it," said Greg Brockman, president of OpenAI. "This is a key part of our mission, if we really want to scale and cover all of humanity, this is what we need to do." He added that the company is already having difficulty launching many of ChatGPT's features and other products that could generate revenue due to a lack of computing power.
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