AMD has scored a massive victory in the AI chip race, announcing a new partnership to supply its advanced AI accelerators to OpenAI. For years, AMD has been trying to catch up to its main rival, Nvidia, which has dominated the market for the powerful chips that run artificial intelligence. This new deal with the company behind ChatGPT is a huge step forward for AMD.
The partnership is a huge vote of confidence in AMD’s next-generation Instinct chips. AMD’s CEO, Lisa Su, called the deal a “true win-win,” saying it will help build “the world’s most ambitious AI buildout.” Landing a flagship customer like OpenAI, which is at the very center of the generative AI boom, is a major validation for AMD’s technology and its plans.
The deal also reveals just how aggressively OpenAI is building out its physical infrastructure. Through its “Stargate” project, the AI startup is becoming one of the biggest infrastructure builders in the tech world. Its first massive data center in Texas is already up and running with Nvidia chips.
However, OpenAI’s upcoming data centers in New Mexico, Ohio, and the Midwest are expected to use a mix of suppliers, with AMD now set to play a key role. For OpenAI, this is a smart move that prevents it from being completely dependent on a single supplier. For AMD, it’s the breakthrough it has been waiting for.
