News: 0179680270

  ARM Give a man a fire and he's warm for a day, but set fire to him and he's warm for the rest of his life (Terry Pratchett, Jingo)

OpenAI and AMD Strike Multibillion-Dollar Chip Partnership (apnews.com)

(Monday October 06, 2025 @11:22AM (msmash) from the aggressive-expansion dept.)


OpenAI and AMD [1]announced a multibillion-dollar partnership on Monday for AI data centers running on AMD processors. OpenAI committed to purchasing 6 gigawatts worth of AMD's MI450 chips starting next year through direct purchases or through its cloud computing partners. AMD chief Lisa Su said the deal will result in tens of billions of dollars in new revenue over the next half-decade.

OpenAI will receive warrants for up to 160 million AMD shares at 1 cent per share, representing roughly 10% of the chip company. The warrants will be awarded in phases if OpenAI hits certain deployment milestones. The partnership marks AMD's biggest win in its quest to disrupt Nvidia's dominance among AI semiconductor companies. Mizuho Securities estimates that Nvidia controls more than 70% of the market for AI chips.



[1] https://apnews.com/article/openai-chatgpt-ai-chips-a4714748ede46621863f4860f608ac98



New units (Score:5, Funny)

by AmiMoJo ( 196126 )

Are we measuring AI by how much energy it wastes now?

Re: (Score:2)

by Rosco P. Coltrane ( 209368 )

I was about to say the same thing. It's really a sad statement on the state of processor development when the metric isn't an awe-inspiring number of operations per second but a depressingly high power consumption value.

Re: (Score:2, Funny)

by Mr. Dollar Ton ( 5495648 )

What else is there to measure it by, except the waste it generates?

Re: (Score:2, Funny)

by AmiMoJo ( 196126 )

Hallucinations per second?

Baby faced giant boobed copyright infringing soft porn images per paying customer?

Times it tells the user to kill themselves per chat?

Re: (Score:2)

by Mr. Dollar Ton ( 5495648 )

These are all part of it.

AI much?? (Score:1)

by Type44Q ( 1233630 )

> OpenAI committed to purchasing 6 gigawatts worth of...

Who's the joker who told the AI that we measure processing power in watts??

10% of AMD for 1.6M ? (Score:2)

by BuckDutter ( 10145835 )

"OpenAI will receive warrants for up to 160 million AMD shares at 1 cent per share, representing roughly 10% of the chip company." 160M * 0.01 = 1.6M, these numbers can't be right.

Re: (Score:2)

by Targon ( 17348 )

The whole thing seems wrong...when do you have a client get shares of your company just for using your products/services? It's not an increase in sales when a shareholder becomes entitled to free chips.

Re: (Score:2)

by gtall ( 79522 )

They are right when AI is consulted about them.

Re: (Score:2)

by Dixie_Flatline ( 5077 )

1 cent is just what they're buying the shares at, not what they're worth.

so, casually eating up .5% of the entire US electr (Score:4, Interesting)

by Jayhawk0123 ( 8440955 )

so, casually eating up .5% of the entire US electrical capacity in one deal... that's just processing.. not including cooling and operations... 6 Gigawatts is equivalent to two states of UTAH. or just Oregon. Depending on the facility design, there might be an additional .6 to 3 gigawatts needed for overhead. So, this deal will need about 6-9 nuclear reactors to power. Where is this generating capacity going to come from? I hope these will replace older chips, and not add...

These numbers are insane... and weird that we went from compute power, to just electrical power. Which when applied to computers is just a stupid metric to use... but sure...i guess for AI chips, might be more difficult to find a standard metric for the processors... But electricity used is just weird.

On a side note, weird that Microsoft decided to shift away from AMD for their Ai processors (and go for internally designed ones), only for OpenAI (a partner of Msft) to pick up the AMD chips.

Dickwaving (Score:2)

by abulafia ( 7826 )

It is an easy number that roughly correlates to scale. The people who care about the number are not interested in technical details, they are interested in big numbers and Line Go Up.

The thing is, everyone knows this party is going to end badly. The numbers involved are a huge multiple of the money that evaporated in the dot.com crash, and a healthy multiple of the 2008 crash.

So the game (particularly for those with big exposure to OAI or their investors, but really everyone, because this is going to tan

Half the world is composed of people who have something to say and can't,
and the other half who have nothing to say and keep on saying it.