AMD and OpenAI form a big computing alliance

In order to obtain 6GW of processing power, OpenAI just signed a new multi-year deal with AMD. The AI pioneer will also acquire up to 10% of the chipmaker. The specifics: AMD anticipates tens of billions of dollars in income from the cooperation, which will begin with the deployment of 1GW of its forthcoming MI450 processors in late 2026. Up to 160 million AMD shares, valued at $0.01 a share, will be awarded to OpenAI; this might amount to 10% ownership contingent on deployment milestones. The agreement brings the overall infrastructure commitments across several vendors to 23GW, after OpenAI's previous 10GW pledge with Nvidia. Since both Nvidia (Jensen Huang) and AMD (Lisa Su, Huang's cousin) are now included in the AI leader's expansive plans, OpenAI is continuing to devour computing commitments across the infrastructure landscape, including a family affair. The ownership stake is further complicating the circular financial systems.