OpenAI signs multibillion-dollar chip deal with AMD

OpenAI and the chipmaker AMD announced on Monday that they had signed a multibillion-dollar chip deal that would also give the ChatGPT creator the option to buy a large stake in the chipmaker. The deal offers OpenAI an opportunity to buy 10% in AMD and marks a major vote of confidence in the company's AI chips and software. Shares of AMD surged more than 30% and added about $80bn to its market capitalization after the announcement. "We view this deal as certainly transformative, not just for AMD, but for the dynamics of the industry," said Forrest Norrod, AMD's executive vice-president. The latest deal, among a string of investment commitments, is a testament to OpenAI and the broader AI industry's voracious appetite for computing power as companies race toward developing AI technology that meets or exceeds human intelligence.