AMD shares surge 24% after signing AI chip-supply deal with OpenAI
The deal gives the ChatGPT creator the option to take up to a 10% stake in the Nvidia rival
Shares of the chipmaker surged 24 per cent on Monday, adding roughly US$63 billion to the company’s market value.
The deal, latest in a string of investment commitments, underscores OpenAI and the broader AI industry’s voracious appetite for computing power as companies race towards developing AI technology that meets or exceeds human intelligence.
“We view this deal as certainly transformative, not just for AMD, but for the dynamics of the industry,” AMD executive vice-president Forrest Norrod said on Sunday.
The agreement closely ties the start-up at the centre of the AI boom to AMD, one of the strongest rivals of Nvidia, which recently agreed to make substantial investments in OpenAI.
Analysts said it was a major vote of confidence in AMD’s AI chips and software but was unlikely to dent Nvidia’s dominance, as the market leader continued to sell every AI chip it could make.