OpenAI is planning even more mega deals ahead

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00:00OpenAI is planning even more mega-deals ahead.

00:03If you thought Silicon Valley's chip wars were cooling down, think again.

00:08OpenAI just turned it into a soap opera.

00:11At practically the same moment, NVIDIA CEO Jensen Huang was on live TV expressing surprise

00:17over OpenAI's new multi-billion dollar deal with rival AMD,

00:21and Sam Altman was somewhere else casually saying,

00:24oh, there are more deals coming.

00:26Huang, who appeared on CNBC's Squawk Box on Wednesday,

00:29was asked whether he knew about the AMD arrangement.

00:32His response? A very unconvincing, not really.

00:36Ouch!

00:37Especially since NVIDIA had just agreed to invest up to $100 billion into OpenAI.

00:43The AMD partnership is a weird one,

00:46and by weird, we mean financially complex enough to give accountants nightmares.

00:51OpenAI will reportedly receive big chunks of AMD stock,

00:54as much as 10% of the company over time,

00:57in exchange for using and helping develop AMD's next-generation AI chips.

01:02In short, OpenAI becomes a shareholder in AMD.

01:06Meanwhile, NVIDIA's deal works in reverse.

01:09NVIDIA is now a shareholder in OpenAI.

01:12It's a corporate trust fall, but with GPUs.

01:15Huang explained that NVIDIA will sell gear.

01:18Directly to OpenAI for the first time.

01:20Previously, everything went through cloud partners like Microsoft and Oracle.

01:23The plan is to help OpenAI self-host its massive AI data centers someday.

01:29Right now, Huang admitted,

01:30OpenAI doesn't actually have the money to buy all that hardware.

01:33Each gigawatt of AI infrastructure could cost $50 to $60 billion,

01:37and OpenAI has already commissioned 10 gigawatts worth

01:41through its $500 billion Stargate project with Oracle and SoftBank.

01:45That's not counting the $300 billion cloud deal with Oracle

01:49or the 6 gigawatts promised to AMD.

01:52Add in NVIDIA and a few European expansions,

01:54and OpenAI's total commitments hit around $1 trillion this year.

01:59Altman, meanwhile, told a 16Zs podcast that this is just the beginning.

02:03You should expect much more from us in the coming months.

02:07The world's biggest AI startup is still shopping,

02:10and the tech industry might want to check its wallet.

02:15All right, thank you.

02:20sovereign money to protect.

02:26All right.

02:29Let me ask aWaitapa.

02:31Let me ask you,

02:32let me ask you a question next thing.

02:34Let me ask you a question.

02:37Next thing,

02:39I'll thank you again.

02:40as we have created!

02:43Foundoise Gesellschaft

02:44creator,

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