OpenAi targets AMD share by 10 % through a bill of dollars

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Openai agreed to purchase tens of billions of AMD chips as part of a deal that can also see the Chatgpt maker takes about 10 percent of the chips maker of $ 270 billion over time.

Starterstation Startment in San Francisco said on Monday that it had agreed to purchase processors with the total power consumption of 6 GB, which is almost equivalent to the average demand in Singapore.

The companies did not put the total number of the dollar on the deal, however Openai Executive officials estimate that 1GW of the capacity costs about $ 50 billion to bring them online, with two -thirds of that spent on chips and infrastructure to support them.

The deal comes just two weeks after the AMD NVIDIA competition announced that it is planning to invest 100 billion dollars In Openai, with the two companies pledged to publish 10gw of the capacity of the new data center.

AMD also issued an order to buy up to 160 million shares at an exercise price of $ 0.01 over time on the basis of AMD “achieving specific share price goals” and Openai spread their chips. This is equivalent to approximately 10 percent of the company.

The AMD shares rose nearly 24 percent on Monday to close at $ 203.71.

The latest treatment aimed at accelerating the development and operation of the new data centers for the training and operation of AI models, and to ensure the central group placing the race to build advanced technology.

“This partnership is a major step in building the account capacity necessary to achieve full artificial intelligence capabilities,” said Samtman, CEO of Openai.

But critics raised concerns about Circular structure Among these huge deals of Amnesty International’s infrastructure, amid uncertainty about how to finance or operate the vast Openai.

AMD has pushed itself as a reliable alternative to the NVIDIA SIM and software for artificial intelligence, as it seeks to narrow the technological works in NVIDIA and win companies such as Microsoft and Meta.

The Openai deal is committed to buying the upcoming MI450 from AMD, which is the most advanced artificial intelligence segment, which aims to compete with the latest Blackweell products in NVIDIA, and is scheduled to reach the market in the second half of next year.

This means that Openai is likely to be one of the largest AMD customers for new technology, with people familiar with it, adding that the two groups have worked together closely in recent weeks to determine MI450 specifications.

Altman said that Amnesty International’s demand for computing power much exceeds the current capacity. It tries to stimulate the development of infrastructure, with some major companies in the technology supply chain closer to starting it.

Openai has also committed to purchasing $ 300 billion of Oracle computer energy over the next five years, and works with Oracle and SoftBank and other development partners to build US data centers with another 7GW of energy demand. In addition, it works to produce its artificial intelligence chips with Broadcom.

In all, these deals are committed to Openai using 23 GB of the new capacity, which, at the estimation of the company, will cost more than one dollar.

The company’s growth since the 2022 Chatgpt was unprecedented, as revenues rose to about $ 13 billion on an annual basis.

But Openai is still making losses due to the sharp cost of developing models, marketing and employment. Its long -term deals and will be paid for increases as operating spending, which means that Openai does not adhere to spending hundreds of billions of dollars in advance.

As part of its arrangement with AMD, Openai can buy direct chips or rent them via a third -party cloud company, according to a person who is familiar with the deal. However, the company must find innovative ways to meet its enlarged future obligations.

Openai executive officials are betting that Chatgpt continues to grow steadily from a weekly user of 700 million users, and that they can pay the percentage of subscribers paid until after the current level of 5 percent. They also explore new revenue lines, including the recently launched shopping feature and Amnesty International designed with former Apple Star designer Jony Ivee.

After raising about $ 60 billion so far, Openai is now looking to rely on the budgets of partners and the debt market to meet the urgent requirements of power.

Openai plans to invest in stocks in NVIDIA, for example, using the company’s most valuable support to secure better conditions than lenders, according to CEO of the company.

Jean -Ho, the AMD financial manager, said that the AMD deal “is expected to provide tens of AMD revenues with the construction of Amnesty International’s infrastructure in Openai.” “This agreement creates a large strategic alignment and value of the shareholders of both AMD and Openai.”