Nvidia’s Huang surprised AMD offered 10% of the company to OpenAI

Nvidia CEO Jensen Huang said on Wednesday. Advanced Micro Devices He offered 10% to Openai as part of a billions of dollars announced at the beginning of this week.

“This is creative, unique and surprising,” Huang said in an interview with “CNBC’s Squawk Box”. He said. “I was surprised that they would give before building 10% of the company. And anyway, I think smart.”

Openai and AMD reached an agreement on Monday, and Openai has committed to buy 6 Gigawatts of AMD chips for several years, including the Future MI450 series. As part of the agreement, Openai will receive leaflets for 160 million AMD shares by giving milestones based on the distribution volume and AMD’s share price.

If Openai uses the full order, the company can roughly ownership in AMD.

AMD shares have risen since the announcement and increased by 5% on Wednesday and this week has so far rose to 35%. Following Huang’s comments, Nvidia shares were about 3% higher on Wednesday.

The agreement is challenging the dominance of Nvidia in the AI ​​chip industry, a market in which AMD is trying to grow as well as cloud providers who develop their chips.

At the end of last month, Nvidia announced that it plans to invest up to $ 100 billion in Openai in the next decade. Openai said it was equal to 4 million to 5 million graphic processing unit (GPU) during Huang’s announcement.

Huang said that the investment is “very different” from Openai’s agreement with Openai’s AMD because NVIDIA allowed to sell it directly to Chatgpt creator.

Nvidia’s investment in Openai underlined the concerns about the “circular nature” of some AI infrastructure agreements.

When Openai was asked how to finance the agreement with Nvidia, Huang said, “They don’t have money yet.”

“First of all, they will have to raise this money as equality or debt, equality or debt.” He said. “When time came to us, they gave the opportunity to invest with other investors.”

Huang, Nvidia’nın previously invested in Openai after previously “the only regret that we have not invested more”, he added.

Huang also confirmed the participation of Nvidia’s last financial tour in which Xai’s Elon Musk’s AI initiative was trying to gather approximately 20 billion dollars. Bloomberg. He added that he was “very excited” about the opportunity of financing and that he wanted him to give more money to Musk.

“Almost everything that Elon is part of, you really want to be a part of it.” He said.

NVIDIA also supported AI data center operator Sunflower seedHuang said he was thinking about someone of a few “great investments” made by the company recently.

“[They’re] They are really private companies and building, they are part of our ecosystem that constitutes the AI ​​infrastructure for the world. “He said.