{"id":195753,"date":"2025-10-07T17:07:10","date_gmt":"2025-10-07T17:07:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/195753\/"},"modified":"2025-10-07T17:07:10","modified_gmt":"2025-10-07T17:07:10","slug":"openai-signs-multibillion-dollar-chip-deal-with-amd-technology","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/195753\/","title":{"rendered":"OpenAI signs multibillion-dollar chip deal with AMD | Technology"},"content":{"rendered":"

OpenAI<\/a> and the chipmaker AMD announced on Monday that they had signed a multibillion-dollar chip deal that would also give the ChatGPT<\/a> creator the option to buy a large stake in the chipmaker.<\/p>\n

The deal offers OpenAI an opportunity to buy 10% in AMD and marks a major vote of confidence in the company\u2019s AI<\/a> chips and software. Shares of AMD surged more than 30% and added about $80bn to its market capitalization after the announcement.<\/p>\n

\u201cWe view this deal as certainly transformative, not just for AMD, but for the dynamics of the industry,\u201d said Forrest Norrod, AMD\u2019s executive vice-president.<\/p>\n

The latest deal, among a string of investment commitments, is a testament to OpenAI and the broader AI industry\u2019s voracious appetite for computing power as companies race toward developing AI technology that meets or exceeds human intelligence. Sam Altman<\/a>, the OpenAI CEO, has said the biggest constraint on his company\u2019s growth is access to computing power, which comes in the form of enormous datacenters filled with advanced semiconductor chips. Last week, Nvidia announced it would invest $100bn in OpenAI, forging a close alliance between two of the leading firms in artificial intelligence.<\/p>\n

Monday\u2019s agreement covers the deployment of hundreds of thousands of AMD\u2019s AI chips, or graphics processing units (GPUs), equivalent to six gigawatts, over several years beginning in the second half of 2026. This is roughly equivalent to the energy needs of 5m US households, or the electricity produced yearly by the Hoover Dam three times over. AMD said OpenAI<\/a> would build a one-gigawatt facility based on its forthcoming MI450 series of chips beginning next year.<\/p>\n

As part of the arrangement, AMD issued a warrant that gives OpenAI the ability to buy up to 160m shares of AMD for 1 cent each over the course of the chips deal.<\/p>\n

AMD executives expect the deal to net tens of billions of dollars in annual revenue. Because of the ripple effect of the agreement, AMD said it expected to receive more than $100bn in new revenue over four years from OpenAI and other customers.<\/p>\n

\u201cOther people are going to come along with it because this is really the pioneer, a pioneer in the industry that has a lot of influence over the broader ecosystem,\u201d Mat Hein, AMD\u2019s strategy chief said.<\/p>\n

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The deal with AMD will help OpenAI build enough AI infrastructure to meet its needs, Altman said in a statement.<\/p>\n

It was not immediately clear how OpenAI would fund the huge deal with AMD. The startup, valued at roughly $500bn, has generated about $4.3bn in revenue in the first half of 2025 and has burned through $2.5bn in cash, according to media reports, as it splurges on attracting top talent and invests heavily in developing new AI tools.<\/p>\n","protected":false},"excerpt":{"rendered":"OpenAI and the chipmaker AMD announced on Monday that they had signed a multibillion-dollar chip deal that would…\n","protected":false},"author":2,"featured_media":195754,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[256,254,255,64,63,105],"class_list":{"0":"post-195753","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-au","12":"tag-australia","13":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/195753","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=195753"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/195753\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/195754"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=195753"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=195753"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=195753"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}