SoftBank has given the green light to the remaining $22.5โค billion of its planned investment in OpenAI, according to a report from The Information. The commitment completes a deal initially announced in 2023, positioning SoftBank asโฃ a major financial backer of the artificial intelligence leader.This final approval unlocks substantial capital for OpenAI โas โit navigates a โperiod of rapidโค growth and intense competitionโค in the AI โsector. The investment will fuel further advancement of OpenAI’s โคtechnologies,โ including its flagship ChatGPT, and support its expansion into new markets. The move underscores SoftBank’s confidence in OpenAI’s long-termโข potential and the broader โAI revolution, impacting industries from technology and financeโ to healthcare โคand education.
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AMD signs AI chip-supply deal with OpenAI, shares surge over 34%
AMD โSecures โAI Chip Supply Dealโข with OpenAI,Stock Jumps Overโ 34%
SAN FRANCISCO,Feb 29 – Advanced micro Devices โฃ(AMD) shares surged โmore than 34% in extended trading Thursday after the company announced aโ multi-billionโ dollar โdeal to โขsupply artificial intelligence (AI) chips toโฃ OpenAI,the โคcreator of chatgpt. โThe agreement positions AMD as a key hardwareโค partner for the leading AI developer and signals growing demand for chips โbeyondโ Nvidia โin the rapidly expanding AI market.
The partnership โฃaddresses a critical bottleneck in the AI boom: the availability of โspecializedโค hardware. OpenAI, like manyโค AI companies, relies on powerfulโค processors to train and run its large language models. While Nvidia currently dominates this โฃspace, diversifying the supplyโค chain is crucial for fostering competition โคand ensuringโ the continued growthโ of AIโ technologies. This deal is expected to significantlyโข boost AMD’s โrevenue and market share in the AI sector, โchallenging Nvidia’s current โstronghold.
AMD will provideโ its Instinct โMI300 series of data center GPUs โคto โpower OpenAI’s workloads. The โagreement includes a commitment from โขOpenAI to utilize AMD’s โคchips for years to come, providing AMD with a stable revenue stream and a platformโ to showcase its AI capabilities.
“This is a importantโ win โคfor AMD, validating โtheirโค investment in the Instinct line and establishing โthem as a seriousโ contender in the AI chipโ market,”โ said Stacy Rasgon, a semiconductor analyst at Bernstein. “The dealโ demonstratesโ that OpenAI โis willing to work with โmultiple vendors, which is โa positive sign for the industry as aโค whole.”
The financial terms โofโฃ the deal โฃwere not disclosed, but AMD indicated it expectsโค to begin recognizing revenue from the partnership โคin the second quarter of 2024.โฃ The company anticipates the deal willโฃ contribute meaningfully to its data center revenue growthโ in the coming years.
AMD’s stock closed at $167.89 on Thursday and was trading at $225.80 in โคafter-hours trading as of 6:30 PM EST.