nvidia CEO Jensen Huang said he was surprised on Wednesday. Advanced Micro Devices It provided itself to 10% OpenAI as part of a multi-billion-dollar partnership announced earlier this week.
“It’s imaginative, unique and amazing. Given that they’re so excited about the next generation of products,” Huang said in an interview with “CNBC’s Squawk Box.” “I’m surprised they’ll hand out 10% of the company before they build it. And anyway, I think it’s clever.”
Openai and AMD signed a deal on Monday, with Openai pledging to purchase 6 gigawatt worth of AMD chips over multiple years, including the upcoming MI450 series. As part of the agreement, OpenAI will receive warrants of up to 160 million AMD shares and confirm milestones based on the amount of deployment and AMD share price.
If Openai exercises a full warrant, the company can take approximately 10% ownership with AMD.
The deal, along with cloud providers where AMD is developing its own chips, challenges Nvidia’s dominance in the AI chip industry, the market AMD has been trying to catch up.
Later last month, Nvidia announced it had planned to invest up to $100 billion in Openai over the next decade. Openai has agreed to build and deploy an NVIDIA system that requires 10 gigawatts of power. This equals 4-5 million graphics processing units (GPUs) at the time of the announcement, Huang said.
Huang said the investment was “very different” from Openai’s deal with AMD in that it allows Nvidia to sell directly to ChatGpt Creator.
Nvidia’s investment in Openai highlights concerns about the “circumcidence” of some AI infrastructure transactions.
Huang asked how Openai will fund its deal with Nvidia. “They don’t have the money yet,” he said.
“They will have to first raise that money through their income, that’s increasing exponentially, fair or debt,” Huang said. “They gave us the opportunity to invest with other investors when the time came.”
Huang added that after Nvidia previously invested in Openai, “the only regret is that we didn’t invest any more.”
According to Bloomberg, Huang confirmed his involvement in Nvidia’s latest funding round in Xai’s latest funding round. He said he was “very excited” about the fundraising opportunity, adding that he hopes to give masks more money.
“I really want to be part of almost everything Elon is part of, you really want to be involved too,” the fans said.
Nvidia also supports AI data center operators coreweaveHuang said he considers one of the “great investments” the company has made recently.
“[They]are really special companies, they’re building. They’re part of our ecosystem and they’re building the world’s AI infrastructure,” says Huang.
