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.
