NVIDIA CEO responds to AMD signing 10% of its company over to OpenAI

NVIDIA CEO Jensen Huang has commented on the recent deal between AMD and OpenAI, saying he was 'surprised' AMD agreed to give away 10% of its company.

NVIDIA CEO responds to AMD signing 10% of its company over to OpenAI
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Tech and Science Editor
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TL;DR: NVIDIA CEO Jensen Huang reacted to AMD's multibillion-dollar deal with OpenAI, where AMD granted over 10% equity to supply Instinct MI450 GPUs for AI systems. Huang called the move surprising and clever, contrasting it with NVIDIA's own partnership providing 10 gigawatts of GPU power without equity stakes.

NVIDIA's CEO Jensen Huang has commented on the recent deal between AMD and OpenAI, where Team Red signed over 10% of the company to provide next-generation AI GPUs to OpenAI to power upcoming artificial intelligence programs.

NVIDIA CEO responds to AMD signing 10% of its company over to OpenAI 651165156
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It was only recently that AMD and OpenAI announced a multibillion-dollar partnership that involved AMD signing over 10% of itself to OpenAI to provide AMD Instinct GPUs, specifically the AMD Instinct MI450 GPUs to OpenAI to provide 6 gigawatts of power for upcoming AI systems. As for 10% of the company, the way the deal is structured is the shares are scheduled to vest when specific milestones are achieved, with the first tranche of the stock set to vest after the initial gigawatt is successfully deployed.

Furthermore, share vesting is also tied to AMD reaching specific share price targets, OpenAI achieving technical and commercial milestones, and OpenAI purchasing waves of AMD GPUs. The deal between AMD and OpenAI comes only a week after OpenAI announced a similar deal with NVIDIA, except NVIDIA didn't sign over any of its shares, and instead of agreeing to provide 6 gigawatts of power with its GPUs, it will be powering 10 gigawatts.

Now, NVIDIA's CEO Jensen Huang has commented on the deal between OpenAI and NVIDIA's competitor, with the CEO saying in an interview with CNBC, "It's imaginative, it's unique and surprising, considering they were so excited about their next generation product. 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."