NVIDIA’s recent success has not been in the gaming graphics card sector, but in AI products. Since then, the Chameleon has established itself as the master of this sector, and now enjoys a virtual monopoly. But this hasn’t stopped its direct competitor, AMD, from concluding agreements with major AI companies such as OpenAI. Greens’ CEO Jensen Huang reacts to the xAI deal in an interview with CNBC!
OpenAI – AMD: the deal that makes Jensen Huang react!
In this interview with CNBC, the head of NVIDIA reacts sarcastically to the recent agreement signed by his competitor. Indeed, the latter states:
“It’s imaginative, it’s unique and it’s surprising considering how enthusiastic they are about this new generation of product. I’m surprised they’ve given away 10% of the company before they’ve even built it [the Mi450]. I guess that’s ingenious.”
As a reminder, the agreement between AMD and OpenIA stipulated that AMD was to supply up to 6 GW of GPU power to the AI company. The cards in question are none other than the future RADEON Instinct Mi450, next-generation chips specialized in this field. However, in addition to these boards, AMD will allow its partner to acquire up to 160 million AMD shares, equivalent to owning 10% of the company. But this share buyback is dependent on the volume of board purchases and the level of commitment.
At the same time, we learn that Jensen Huang has signed a contract with xAI to supply hardware to Elon Musk’s company. The deal involves a colossal number of graphics cards – between 4 and 5 million – at a cost of up to $100 billion over a decade. Inevitably, when questioned on the subject, Musk boasts of having made a different deal with AMD. Basically, the company sells graphics cards, but doesn’t sell itself to its customer. He goes on to say that he regrets not having “invested more in OpenAI”. But he remains “very enthusiastic about the xAI opportunity”, indicating that he “would like to be able to give it more money”.
In short, we can feel that Jensen Huang’s ego has been stung, and that this agreement with AMD still tickles him.