Key takeaways
- OpenAI is partnering with AMD to build out its AI infrastructure with the company’s new chip.
- This is the second such deal made by OpenAI in the last few weeks, as it announced a $100 billion partnership with NVIDIA at the end of September.
- The double dipping deals are fueling more concerns that the AI bubble is getting ready to pop in 2025.
If there’s a sale on AI chips, OpenAI is clearly buying, with the company announcing yet another partnership, this time with chipmaker AMD.
If you didn’t know, all that generative AI technology you’ve heard about over the last few years requires a lot of hardware. AI chips are used to power these advanced models and the companies you know and love in the industry don’t make them on their own.
That’s why OpenAI has been snatching them up like hot cakes, in hopes of ensuring that the company’s lofty AI goals aren’t hampered by a lack of infrastructure.
OpenAI & AMD Enter Partnership
Announced this week, OpenAI and chipmaker AMD are entering a partnership to help build out AI infrastructure for the creators of the world’s most popular chatbot.
“This partnership is a major step in building the compute capacity needed to realize AI’s full potential. AMD’s leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster.” – Sam Altman, CEO of OpenAI in a news statement
The deal will see OpenAI buying a whole bunch of AMD’s upcoming AI chip, Instinct MI450, in an effort to ensure that the company can continue with its lofty plans for AI domination.
OpenAI and Its Many Partnerships
To say that OpenAI is on the hunt for partnerships to build out its AI infrastructure would be a dire understatement. The company has secured a wide range of deals over the last few months that point to some serious plans to expand soon.
In addition to the AMD partnership that was just announced, OpenAI has signed a $100 billion deal with NVIDIA that would also provide the company with chips.
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On top of that, OpenAI signed another deal in early September with Oracle to the tune of $300 billion for cloud and computing capabilities, rather than actual chips.
AI Boom or Impending Burst?
The big question on everyone’s mind is whether or not this whole AI thing is for real, especially when it comes to all this investment. Simply put, are we in an AI boom or are we just waiting for the bubble to inevitably burst?
Over the last few months, OpenAI has secured deals with other AI companies that amount to more than $1 trillion, which certainly points to the possibility of a self-funded industry.
Still, the technology is obviously groundbreaking, and if it can get rid of all the AI errors in time, the bubble could turn into something legitimate that transforms how we do business.
