AMD & OpenAI ink multibillion-dollar deal: AMD CEO says 'bold moves

Core Insights - AMD and OpenAI are collaborating to build a significant AI infrastructure, focusing on a six-gigawatt deal that is expected to generate tens of billions of dollars in revenue for AMD over the coming years [3][4][19] - The partnership aims to enhance AI computing capabilities, with the first phase of deployment set for the second half of next year, leading to substantial revenue growth for AMD [4][10] Group 1: Partnership and Revenue Potential - The collaboration between AMD and OpenAI is centered around building six gigawatts of AI compute power, which is projected to yield double-digit billions in revenue for AMD [3][4] - This deal represents a long-term partnership, with several years of groundwork laid through testing and development of AMD's MI300 and MI350 chips, culminating in the upcoming MI450 [7][8] Group 2: Technological Development - The technology involved in this partnership is complex, requiring significant collaboration between AMD, OpenAI, and cloud service partners to ensure sufficient power and infrastructure for AI computing [12][13] - AMD's MI450 chip, utilizing advanced two-nanometer technology, is positioned as a best-in-class solution for AI computing, which is critical for meeting the demands of foundational AI models [8][12] Group 3: Industry Impact and Future Outlook - The initiative is seen as a foundational step in the evolution of AI, with the potential to revolutionize various industries by providing enhanced computing capabilities [10][19] - The total addressable market (TAM) for AI silicon accelerators is projected to be significantly higher than the previously estimated $500 billion, indicating strong global demand for AI infrastructure [19][20]