OpenAI and AMD Strike Multibillion-Dollar Chip Partnership (apnews.com) 24
OpenAI and AMD announced a multibillion-dollar partnership on Monday for AI data centers running on AMD processors. OpenAI committed to purchasing 6 gigawatts worth of AMD's MI450 chips starting next year through direct purchases or through its cloud computing partners. AMD chief Lisa Su said the deal will result in tens of billions of dollars in new revenue over the next half-decade.
OpenAI will receive warrants for up to 160 million AMD shares at 1 cent per share, representing roughly 10% of the chip company. The warrants will be awarded in phases if OpenAI hits certain deployment milestones. The partnership marks AMD's biggest win in its quest to disrupt Nvidia's dominance among AI semiconductor companies. Mizuho Securities estimates that Nvidia controls more than 70% of the market for AI chips.
OpenAI will receive warrants for up to 160 million AMD shares at 1 cent per share, representing roughly 10% of the chip company. The warrants will be awarded in phases if OpenAI hits certain deployment milestones. The partnership marks AMD's biggest win in its quest to disrupt Nvidia's dominance among AI semiconductor companies. Mizuho Securities estimates that Nvidia controls more than 70% of the market for AI chips.
New units (Score:5, Funny)
Are we measuring AI by how much energy it wastes now?
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I was about to say the same thing. It's really a sad statement on the state of processor development when the metric isn't an awe-inspiring number of operations per second but a depressingly high power consumption value.
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What else is there to measure it by, except the waste it generates?
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Hallucinations per second?
Baby faced giant boobed copyright infringing soft porn images per paying customer?
Times it tells the user to kill themselves per chat?
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These are all part of it.
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What is it in boiled dry Olympic swimming pools? (Score:2)
AI much?? (Score:1)
OpenAI committed to purchasing 6 gigawatts worth of...
Who's the joker who told the AI that we measure processing power in watts??
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FLOPS would be a useful unit for an amount of microchips.
10% of AMD for 1.6M ? (Score:2)
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The whole thing seems wrong...when do you have a client get shares of your company just for using your products/services? It's not an increase in sales when a shareholder becomes entitled to free chips.
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They are right when AI is consulted about them.
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"These numbers can't be right" because a warrant is not a share, a warrant is an option to buy shares at some contracted price. It doesn't mean they get the shares for 1 cent, just that 1c is the price of the warrant.
The contracted purchase price is not specified:
The warrant will vest based on two milestones tied to the amount of computing power deployed, as well as unspecified “share-price targets.”
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1 cent is just what they're buying the shares at, not what they're worth.
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In this instance, it'd be a promise something like this: that OpenAI can buy some AMD shares at some point in the future for their price today, knowing that news of this deal will cause the share price to increase.
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But that's not a bribe. That word has a definition- it's offering part of your company as part of the deal. It's just business.
AMD is trying to make a major move into a market they've been crushed in. They're doing this by offering a major player in that market 10% of their company to buy their shit instead of who they would have bought it from.
so, casually eating up .5% of the entire US electr (Score:4, Interesting)
so, casually eating up .5% of the entire US electrical capacity in one deal... that's just processing.. not including cooling and operations... 6 Gigawatts is equivalent to two states of UTAH. or just Oregon. Depending on the facility design, there might be an additional .6 to 3 gigawatts needed for overhead. So, this deal will need about 6-9 nuclear reactors to power. Where is this generating capacity going to come from? I hope these will replace older chips, and not add...
These numbers are insane... and weird that we went from compute power, to just electrical power. Which when applied to computers is just a stupid metric to use... but sure...i guess for AI chips, might be more difficult to find a standard metric for the processors... But electricity used is just weird.
On a side note, weird that Microsoft decided to shift away from AMD for their Ai processors (and go for internally designed ones), only for OpenAI (a partner of Msft) to pick up the AMD chips.
Dickwaving (Score:1)
The thing is, everyone knows this party is going to end badly. The numbers involved are a huge multiple of the money that evaporated in the dot.com crash, and a healthy multiple of the 2008 crash.
So the game (particularly for those with big exposure to OAI or their investors, but really everyone, because this is going to tan
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They plan a huge infrastructure. Look what percentage e.g. video streaming requires. I guess many of the toy usages of AI will die out (or be left to smaller models outside of OpenAI's data centers), but they surely plan to provide a large infrastructure for the remaining uses. And even when some people are loud about that they think AI is useless, we will see AI integrated into most new tech just like everything is now connected to the internet. Much of it will be useful, others will still be bullshit like
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Solar plants alone in the US are adding multiple dozens of GW per year, so no biggie.
Completely Wrong Focus (Score:2)
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I read China adds more power generation each year now than the US has in whole. This means anything electric China will be ahead
No, that's not what that means.
It means they have 4.5x the population as us.
You cannot compare things like "added power generation" without using the population as a denominator.
China has ~2.92TW of total capacity, and 479 million households.
That is about 6kW per household.