OpenAI eyes 10% stake in AMD through AI chip deal

AMD ON MONDAY said it will supply artificial intelligence chips to OpenAI in a multiyear deal that would bring in tens of billions of dollars in annual revenue and give the ChatGPT creator the option to buy up to roughly 10% of the chipmaker.

- MAX A CHERNEY

Shares of AMD surged more than 34% to touch a more than one-year high of $226.71 and added $80 billion to its market capitalisation.

The latest deal, among a string of investment commitments, is a testament to OpenAI and the broader AI industry's voracious appetite for computing power as companies race toward developing AI technology that meets or exceeds human intelligence.

The deal offers OpenAI an opportunity to take a stake in one of Nvidia's most formidable rivals and is a major vote of confidence in AMD's AI chips and software.