Advanced Micro Devices, a prominent US chipmaker, has announced a multiyear agreement with the ChatGPT-maker and the prodigal child of the AI race, Open AI, to supply 6 gigawatts (GW) of compute power, in an infrastructure project that could generate tens of billions of dollars and benefit tremendously the entire AI ecosystem.
The strategic partnership with Open AI is expected to accelerate the production pace of AMD graphic processing units, supplying multiple generations of Instinct GPUs, leading with the MI450 series.
The deal also includes Open AI receiving warrants worth of up to 160 million AMD shares, which is approximately 10% ownership stake in the chipmaker, solidifying further their ambitious partnership further.
Lisa Su, the CEO of AMD, noted in Bloomberg interview that in order for companies to achieve their AI goals, they need compute power, “Compute is the foundation for all of the intelligence we can get from AI. AMD is a compute provider”
We have to note nonetheless, that AMD severely lacks the infrastructure that NVDIA, its main competitor, has so far created, holding merely 17% of data centre market share, whereas NVDIA, holds over 60%. Needless to say, Nvidia is likely to respond strategically to AMD’s multi-year deal with OpenAI by leveraging and expanding its own partnerships and investments to maintain its dominance in AI computing.
Technical Analysis
AMD Chart – The chipmaker took off like a rocker after announcing partnership with Open AI
Resistance: 227.30 (R1), 260.00 (R2), 300.00 (R3)
Support: 185.00 (S1), 152.00 (S2), 132.00 (S3)
