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On Wednesday, Nvidia Corp. (NASDAQ:NVDA) CEO Jensen Huang on weighed Advanced Micro Devices, Inc (NASDAQ:AMD) partnership with OpenAIwho called the move “imaginative” but “surprising.”
Speaking on CNBC's Squawk Box, Huang was asked about AMD's recently announced deal with OpenAI, which includes an injunction granting the ChatGPTmaker to 160 million AMD shares – about 10% of the company – tied to AI chip deployment milestones.
“I saw the deal. It's imaginative. It's unique and surprising considering they were so excited about their next-generation product,” Huang said. “I'm surprised they're giving away 10% of the company before they even build it. Either way, it's smart, I think.”
AMD's deal with OpenAI followed the AI startup's $100 billion infrastructure partnership with Nvidia, which was announced last month.
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During the call, Huang also explained that Nvidia's own partnership with OpenAI is structured differently.
“This is the first time we're going to sell directly to them,” he said, referring to OpenAI.
“So far, we've been selling largely through the cloud… by selling directly to them, we can help them prepare for a day when they're self-hosted and hyperscalers.”
He added that Nvidia's extensive infrastructure – which includes CPUs, GPUs, networking chips and software stacks – makes it the only company capable of building complete AI supercomputers.
“We are the only company in the world today that is really focused on building the entire AI infrastructure,” says Huang.
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Huang's comments come as competition between Nvidia and AMD increases for dominance in the fast-growing AI chip market.
AMD CEO Lisa Sua distant cousin of Huang, previously described Huang's company MI300X accelerator as a strong alternative to Nvidia's GPUs.
However, industry analysts, including short-seller James Chanoshave questioned the structure of the AMD-OpenAI deal, suggesting that giving away equity in exchange for revenue commitments could be risky.
Despite these dynamics, Huang praised AMD as “a very good company” that Nvidia takes “very seriously.”
Photo: jamesonwu1972 on Shutterstock.com
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This article 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' originally appeared on Benzinga.com
