In the competitive landscape of artificial intelligence (AI), Nvidia and AMD are betting big on OpenAI, the creator of ChatGPT, to capture the growing AI hardware market. Nvidia has committed up to $100 billion in a partnership that requires OpenAI to purchase 10 gigawatts of its advanced chips, solidifying its position as a key player in AI technology. Meanwhile, AMD has secured a multi-year deal allowing OpenAI to acquire up to a 10% stake, offering 6 gigawatts of its Instinct GPUs, which is expected to generate substantial revenue. Both partnerships illustrate a strategic shift in the semiconductor sector, fueling industry speculation about a potential AI bubble. Concerns arise over circular investments, where Nvidia funds OpenAI, which then purchases from both companies. Future profitability hinges on OpenAI’s ability to monetize its offerings amid regulatory scrutiny and growing competition from companies like Google. This dynamic underscores the evolving AI infrastructure landscape and the race for chip dominance.
Source link
Share
Read more