OpenAI set to build one-gigawatt worth of AI facility using AMD’s upcoming MI450 chip series next year.
The first step towards AI innovation was the introduction of low-level reasoning models that helped users generate content and conduct in-depth research. It was a tool or an assistant that helped with the most mundane of human-led tasks.
But it’s barely the first step, and not precisely what AI visionaries have in mind.
For the next phase, business leaders and developers are playing around, testing the market waters. They are advancing and building on existing models to advance their capabilities.
Now the leaders know what exactly they want and how to acquire it: superintelligence.
OpenAI’s latest partnership with AMD is a step toward transforming this vision into reality.
Developing the first set of models was an experimental process, and the market’s positive response was a significant boost that the AI companies truly needed.
However, the AI industry’s appetite is a sinkhole that few were aware of. It’s hungry for more and more computing power as every large tech name joins the race to be the first one to inch closer to AI models that equate to or exceed human intelligence. That’s the final feat.
Given this insatiable need, investments and partnerships are flooding the market. More computing power? = More chips and software.
Sam Altman has previously stated that the biggest hindrance to developing advanced AI models is limited computing power. It’s why OpenAI has been able to take another transformative step with ChatGPT.
The solution is AMD.
OpenAI and AMD’s alliance is also a vote of confidence in AMD’s chips and software- their quality and functionality. This agreement has also opened up an option for the AI leader to buy a huge stake in the chip maker.
And since then, AMD’s shares rose 30%, while its market capitalization increased by $80 billion. OpenAI has substantial influence in the market, and this partnership will only impact the broader ecosystem.
It’s only an upside for AMD as the agreement could add tens of billions of dollars to its annual revenue, attracting similar potential investments from industry giants.
