Nvidia's Huang Says He's Surprised AMD Offered 10% of the Company in 'Clever' OpenAI Deal

(Wednesday October 08, 2025 @11:25AM (msmash) from the how-about-that dept.)

Reference: 0179713996
News link: https://slashdot.org/story/25/10/08/1449201/nvidias-huang-says-hes-surprised-amd-offered-10-of-the-company-in-clever-openai-deal
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Nvidia CEO Jensen Huang said Wednesday that [1]he's surprised Advanced Micro Devices offered [2]10% of itself to OpenAI as part of a multibillion-dollar partnership announced earlier this week. From a report:

> "t'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.

[1] https://www.cnbc.com/2025/10/08/nvidia-huang-amd-open-ai.html

[2] https://slashdot.org/story/25/10/06/141218/openai-and-amd-strike-multibillion-dollar-chip-partnership

Didn't think anyone could.... (Score:5, Funny)

by zurkeyon ( 1546501 )

Out maneuver him with his US Gov and Intel Deals. Those crafty humans! ;-D

I'm not surprised at all (Score:2)

by rsilvergun ( 571051 )

Amd's biggest problem is getting people to use their software so they can get a foot in the door and take over from cuda.

Open AI is huge and getting them to use AMD software will be a huge leg up in the entire industry.

It's less about hardware and more about software adoption that leads into hardware sales. The only surprising thing is AMD figured that out.

Clever (Score:1)

by greytree ( 7124971 )

Clever, because they know it is all monopoly money once the AI crash comes.

Great Technique (Score:2)

by Roger W Moore ( 538166 )

It's rare to see such a good example of damning with faint praise. It even managed to cast aspersions on their next generation product all while seemingly heaping praise on them.

It's just stock dilution. (Score:2)

by Fly Swatter ( 30498 )

Corporations do it all the time, and it's 10 percent over years with milestone requirements to receive those warrants - not only purchase requirements but also stock price minimum requirements, the last tranche of warrants requires an AMD $600 trading price to activate.