NVIDIA's CEO, Jensen Huang, has reacted to the deal made between AMD and OpenAI, presenting rather interesting remarks about the partnership.
NVIDIA's Jensen Huang 'Surprised' By AMD's Excitement Towards the MI450 AI Lineup, Implying that Competition is Ramping Up
For those unaware, AMD recently entered into a massive deal with OpenAI, which involved supplying over six gigawatts worth of AMD chips, including the Instinct MI450 AI chip, which is yet to be released. The deal came just a few days after the announcement of a blockbuster collaboration between NVIDIA and OpenAI; hence, the 'heat of competition' between two major compute providers is definitely there. Now, Jensen has reacted to AMD's OpenAI partnership, speaking with CNBC, and said he's surprised that AMD plans to give a portion of its firm, around a lineup that has yet to be released.
It’s imaginative, it’s unique and surprising, considering they were so excited about their next generation product. I’m surprised that they would give away 10% of the company before they even built it. And so anyhow, it’s clever, I guess.
These are some 'cheeky' remarks by NVIDIA's CEO, and more importantly, he also claimed that AMD's partnership with OpenAI was completely unknown at the time when the ChatGPT creator went into a deal with NVIDIA. One of the primary reasons why OpenAI's announcements matter so much for compute providers is that now, both NVIDIA and AMD are on equal footing when it comes to interest in next-gen AI solutions like Vera Rubin and the Instinct MI450. This also means that for Jensen, the competition will intensify.
In a previous report, we discussed how AMD's CEO Lisa Su expects to generate a massive $100 billion from this partnership over the upcoming years, and the deal will be driven by lineups such as the Instinct MI450, which is also a significant aspect to consider. Reports around the industry suggest that with the upcoming AI products from AMD, NVIDIA will face competition at its peak, both in the GPU and rack-scale segments, which means Jensen will need to accelerate the company's progress.
Of course, a competition is always healthy for the AI industry, but for NVIDIA, it is important to consider AMD's growing stance, since for several years now, Team Green has enjoyed a partial 'monopolistic' market, which Big Tech has been focusing solely on adopting the tech stack provided by Jensen & Co.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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