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]

Core Viewpoint - NVIDIA's CEO Jensen Huang downplayed competition from AMD, emphasizing the fundamental differences between the two companies and highlighting NVIDIA's evolution into a computing platform company rather than just a hardware manufacturer [1][2]. Company Differentiation - Huang stated that while both companies produce similar products, they operate fundamentally differently, with NVIDIA focusing on a broader computing platform [2]. - NVIDIA has developed extensive ecosystems and software solutions that support its hardware, which Huang believes gives it a competitive edge over AMD's hardware-centric approach [3][5]. AI Infrastructure Development - NVIDIA is involved in building large-scale AI infrastructure, with Huang noting that their systems can span "a thousand acres" and operate at hundreds of megawatts to gigawatts [4]. - OpenAI has recently entered into significant partnerships with both NVIDIA and AMD, including a $100 billion deal with NVIDIA to deploy 10 gigawatts of computing systems starting in the second half of 2026 [6]. Market Reactions and Skepticism - Analysts and investors have expressed skepticism about the recent deals, with concerns that they are more announcements than actual implementations, emphasizing the importance of execution in the competitive landscape [7]. - Criticism has also been directed at AMD for issuing stock warrants to OpenAI in exchange for purchase orders, raising questions about the financial implications of such deals [8]. Stock Performance - NVIDIA's stock experienced a slight decline of 0.25% to close at $185.04, but showed a pre-market increase of 0.37%, indicating a generally favorable outlook among investors [9].