AMD & OpenAI = NVDA Confusion (Patreon)

NVIDIA CEO Jensen Huang commented on OpenAI’s new partnership with AMD, NVIDIA’s main AI chip rival. OpenAI will start using AMD’s Instinct chips to reduce its reliance on NVIDIA, and in return, AMD is offering OpenAI up to a 10% ownership stake — a bold and risky move meant to attract major customers.

Huang called the deal “unique and surprising,” noting that AMD is giving away equity before its next-gen chips have proven themselves. He also emphasized that NVIDIA’s true strength isn’t just hardware, but its powerful software ecosystem (CUDA), which keeps developers loyal and competitors at a disadvantage. He also said AMD could give away chips for free but it does not mean tehy will ever add any value! Weird words.

Overall, the deal highlights AMD’s attempt to challenge NVIDIA’s dominance in AI chips — a high-stakes bet that could either pay off big or backfire. Jensen seems confident he will be fine.