AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake

AMD said on Monday it will supply artificial intelligence chips to OpenAI in a multi-year deal that would bring in tens of billions of dollars in annual revenue and give the ChatGPT creator the option to buy up to roughly 10% of the chipmaker.

The deal offers OpenAI an opportunity to take a stake in one of Nvidia‘s most formidable rivals and is a powerful endorsement of Advanced Micro Devices’ (AMD’s) AI chips and software.

Shares of AMD jumped more than 23% in premarket trading.

“We view this deal as certainly transformative, not just for AMD, but for…