OpenAI has intensified Silicon Valley’s chip wars, stirring controversy with its recent multibillion-dollar partnership with AMD, catching Nvidia CEO Jensen Huang off guard. During a live CNBC interview, Huang feigned ignorance about the AMD deal, even as Nvidia pledged to invest up to $100 billion in OpenAI. This unusual arrangement involves OpenAI acquiring up to 10% of AMD stock, positioning the AI giant as a shareholder in AMD. Conversely, Nvidia becomes a shareholder in OpenAI and will sell hardware directly to them, aiding in future self-hosting of AI data centers. However, OpenAI faces significant financial challenges, with infrastructure costs potentially exceeding $1 trillion this year, including commitments from Oracle and AMD. As Sam Altman hinted at more deals on the horizon, the tech industry should brace for rapid developments. Stay updated on this evolving situation in the AI sector by following us on Flipboard, Google News, or Apple News.
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