Jensen Huang Shocked by AMD's Bold Move to Partner with OpenAI

Advanced Micro Devices (AMD) has struck a massive deal with OpenAI, catching the attention of Nvidia’s CEO, Jensen Huang.

Announced on Monday, the multi-billion-dollar agreement has OpenAI agreeing to buy 6 gigawatts worth of AMD chips, including the highly anticipated MI450 series, over the coming years. As part of the deal, OpenAI gets the option to buy up to 160 million AMD shares, which could give them about 10% ownership of the company if they go all in.

During a meeting on Wednesday, Huang didn’t hide his surprise at AMD’s move.  “It’s imaginative, it’s unique and surprising, considering they were so excited about their next generation product,” he said, pointing out how excited AMD seemed about their new products. “I’m surprised that they would give away 10% of the company before they even built it. And so anyhow, it’s clever, I guess.”

• AMD Strikes Multi-Billion Dollar Deal with OpenAI, Shocking Nvidia’s Jensen Huang
• OpenAI to Buy 6GW of AMD AI Chips and Up to 10% Stake in Bold Partnership Move
• Jensen Huang Reacts to AMD–OpenAI Alliance as AI Chip Battle Heats Up

This partnership is a big step for AMD as it tries to carve out a bigger slice of the AI chip market, where Nvidia has been the top dog. The deal’s terms tie OpenAI’s potential ownership to how many chips are used and AMD’s stock price, which could make things interesting for both sides as they work to push AI technology forward. If OpenAI fully cashes in on the deal, it could become a major player in AMD’s future, especially given its success with ChatGPT.

This move highlights how fiercely companies are competing to lead the AI revolution. AMD’s bet on supplying cutting-edge chips could make it a go-to partner for OpenAI’s big plans. Meanwhile, Huang’s reaction shows just how high the stakes are in this fast-moving industry.

Also Read: Nvidia to Invest in Elon Musk’s xAI under $20 Bn AI Deal

As AI keeps reshaping tech, all eyes will be on how this partnership plays out and whether AMD’s bold strategy pays off in the race to dominate the AI market.