Nvidia's Huang says he's surprised AMD offered 10% of the company in 'clever' OpenAI deal
Nvidia CEO Jensen Huang expressed surprise at AMD's decision to offer OpenAI a 10% stake in the company as part of a recent multibillion-dollar partnership. He described the move as imaginative and clever, especially given AMD's excitement about its next-generation products. The deal includes OpenAI committing to purchase 6 gigawatts of AMD chips and receiving warrants for up to 160 million shares, potentially allowing OpenAI to acquire a 10% ownership in AMD if fully exercised.
Nvidia CEO Jensen Huang said Wednesday that he's surprised Advanced Micro Devices offered 10% of itself to OpenAI as part of a multibillion-dollar partnership announced earlier this week.
"It's imaginative, it's unique and surprising, considering they were so excited about their next generation product," Huang said in an interview with "CNBC's Squawk Box." "I'm surprised that they would give away 10% of the company before they even built it. And so anyhow, it's clever, I guess."
OpenAI and AMD reached a deal on Monday, with OpenAI committing to purchase 6 gigawatts worth of AMD chips over multiple years, including its forthcoming MI450 series. As part of the agreement, OpenAI will receive warrants for up to 160 million AMD shares, with vesting milestones based on deployment volume and AMD's share price.
If OpenAI exercises the full warrant, the ChatGPT creator could acquire roughly 10% ownership in AMD.
