Nvidia CEO Calls AMD's 10% OpenAI Stake Offer 'Clever' as AMD Shares Surge 43% on Multibillion-Dollar Chip Deal
Summary
AMD shares skyrocket 43% after offering OpenAI a 10% company stake in a multibillion-dollar chip deal that directly challenges Nvidia's AI market dominance, prompting Nvidia CEO Jensen Huang to call the move 'clever' while his company separately commits $100 billion to OpenAI.
Key Points
- Nvidia CEO Jensen Huang expresses surprise that AMD offered OpenAI a 10% company stake as part of their multibillion-dollar chip partnership, calling the deal 'clever' but questioning the timing before AMD builds its next-generation products
- AMD shares surge 43% this week following the Monday announcement of the deal, which includes OpenAI purchasing 6 gigawatts worth of AMD chips and receiving warrants for up to 160 million AMD shares
- The AMD-OpenAI partnership directly challenges Nvidia's dominance in the AI chip market, while Nvidia separately plans to invest up to $100 billion in OpenAI over the next decade for a 10-gigawatt system deployment