Andrew here. Breaking: OpenAI just announced a huge deal with AMD — two weeks after Nvidia agreed to invest up to $100 billion in the A.I. giant. We’ve got the details below. And amid the government shutdown, there is one part of Washington that’s about to begin hugely crucial work: The Supreme Court, which starts its latest term on Monday. The cases it plans to hear over the coming months could reshape policy and have huge implications for business.
We’ve got a full rundown below, along with the latest on the shutdown and a look at how international businesses are reacting to the Israel and Hamas peace talks. (Was this newsletter forwarded to you? Sign up here.)
What AMD and Nvidia have in common now
Shares in AMD jumped 27 percent in premarket trading on Monday after the chipmaker announced an expansive deal with OpenAI that could see the artificial intelligence giant take a 10 percent stake.
But the transaction comes just two weeks after OpenAI struck another deal with Nvidia, AMD’s rival — both underscoring the ChatGPT maker’s seemingly boundless ambitions and raising questions about its relations with key business partners.
The details:
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OpenAI said it would begin using AMD chips in the second half of next year as it builds more data centers. (They will be separate from the facilities that the company is committed to building in Texas, New Mexico, Ohio and another location in the Midwest.)
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OpenAI added that it planned to use enough AMD chips to consume 6 gigawatts of power, or enough energy to supply all households in Massachusetts.
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OpenAI will also receive a warrant for up to 160 million shares in AMD — equivalent to a 10 percent stake — that will vest in stages as specific milestones are reached.
OpenAI and other tech giants are accelerating a computing resources arms race, as they seek the processing abilities to power A.I. tools. OpenAI, Amazon, Google, Meta and Microsoft have announced plans to spend more than $325 billion combined on data centers by the end of this year alone.
“This partnership is a major step in building the compute capacity needed to realize A.I.’s full potential,” Sam Altman, OpenAI’s co-founder and C.E.O., said of the AMD deal.
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