AMD Scores Big with OpenAI Deal, Set to Generate Billions in AI Chip Revenue
AMD has inked a transformative deal with OpenAI, supplying AI chips in a multi-year agreement that could generate tens of billions in annual revenue for AMD. The deal underscores the soaring demand for computing power in the AI sector.
Forrest Norrod, AMD's executive vice president, sees this partnership as a game-changer for the industry. OpenAI, which has the option to acquire up to 10% of AMD, has shown confidence in AMD's chips and software. The agreement deepens ties between the two companies, with AMD expected to bring in over $100 billion in new revenue over four years.
AMD's shares surged over 34% following the announcement, adding $80 billion to its market value. This deal comes amidst AMD's forecasted revenue of $32.78 billion this year, compared to Nvidia's projected $206.26 billion.
The AMD-OpenAI partnership is set to bring significant revenue to AMD, with tens of billions expected annually. This deal signals AMD's growing strength in the AI chip market and could reshape the competitive landscape, with AMD now supplying AI chips to one of the leading AI companies.
