Nvidia CEO Jensen Huang Says He's 'Surprised' AMD Would Give Away 10% Of The Company In Its Deal With OpenAI: 'It's Clever, I Guess'

Core Insights - Nvidia CEO Jensen Huang commented on AMD's partnership with OpenAI, describing it as "imaginative" but "surprising" due to AMD giving away a 10% stake in the company before launching their next-generation product [1][2] - AMD's deal includes a warrant for OpenAI to acquire up to 160 million shares, contingent on AI chip deployment milestones [1][2] - Nvidia's partnership with OpenAI is structured differently, focusing on direct sales to OpenAI rather than through cloud services, which Huang believes positions Nvidia uniquely in the AI infrastructure market [3][4] AMD and OpenAI Partnership - AMD's agreement with OpenAI follows a significant $100 billion infrastructure partnership between OpenAI and Nvidia [2] - Huang expressed surprise at AMD's decision to give away equity for revenue commitments, indicating potential risks in this strategy [5][6] Competitive Landscape - The competition between Nvidia and AMD in the AI chip market is intensifying, with AMD's MI300X accelerator being positioned as a strong alternative to Nvidia's GPUs [5] - Despite the competitive dynamics, Huang acknowledged AMD as a "really good company" that Nvidia takes seriously [6]