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1h ago

Nvidia’s Jensen Huang Questions AMD–OpenAI Equity Deal as Altman Signals More Mega Partnerships

OpenAI is pursuing gigawatt-scale compute through stock-linked supplier pacts to address near-term funding constraints.

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Overview

  • Huang told CNBC he was surprised AMD would grant OpenAI rights to roughly 10% of the company tied to an unshipped product and said he was not aware of the agreement before it was announced.
  • TechCrunch reports the AMD pact gives OpenAI up to 10% of AMD over time based on stock and deployment milestones as OpenAI uses and helps develop AMD’s next-generation GPUs, including the unreleased MI450.
  • Nvidia’s arrangement makes it a shareholder in OpenAI with an investment reported up to $100 billion and introduces direct sales of complete AI systems to prepare OpenAI to operate as a self-hosted hyperscaler.
  • Huang estimated each gigawatt of AI data center capacity would cost $50 billion to $60 billion and said OpenAI does not yet have the cash to pay for all planned gear.
  • OpenAI’s 2025 commitments include roughly 10 GW with Nvidia, 6 GW with AMD, and about 10 GW via its Stargate deal with Oracle and SoftBank, and CEO Sam Altman said more large partnerships are coming, even as critics label some arrangements “circular.”