Seeking Alpha’s roundup of statements, announcements, and remarks that could impact the technology sector.
- OpenAI said it has agreed to a deal with Advanced Micro Devices (NASDAQ:AMD) that could see the ChatGPT developer take a 10% stake in the chipmaker.
Under the deal, OpenAI will deploy 6 gigawatts of AMD GPUs based on a multi-year, multi-generation agreement. An initial 1 gigawatt OpenAI deployment of AMD Instinct MI450 Series GPUs is expected to begin in the second half of 2026, according to a statement.
As part of the deal, AMD (NASDAQ:AMD) has issued OpenAI a warrant for up to 160 million AMD common shares, which is structured to vest as specific milestones are achieved, Open AI added.
“We have to do this,” OpenAI President Greg Brockman told CNBC on Monday.” “This is so core to our mission if we really want to be able to scale to reach all of humanity, this is what we have to do.”
Brockman added that OpenAI has been unable to launch certain products because of a lack of compute power.
CNBC said if OpenAI exercises the AMD (AMD) warrant in full, it could acquire a roughly 10% stake in AMD.
- AMD (AMD), meanwhile, said the OpenAI deal should be highly accretive to its non-GAAP EPS.
“Our partnership with OpenAI is expected to deliver tens of billions of dollars in revenue for AMD while accelerating OpenAI’s AI infrastructure buildout,” said AMD CFO Jean Hu, in a statement.
“This agreement creates significant strategic alignment and shareholder value for both AMD and OpenAI and is expected to be highly accretive to AMD’s non-GAAP earnings-per-share,” Hu added.
- Cerebras (CBRS) CEO Andrew Feldman said the AI chipmaker is still interested in pursuing an IPO despite withdrawing its application from the SEC on Friday.
In a statement posted on LinkedIn late Sunday, Feldman noted that the Cerebras’s original IPO filing, which was made in September 2024, had “grown stale.”
“Given that the business has improved in meaningful ways we decided to withdraw so that we can re-file with updated financials, strategy information including our approach to this the rapidly changing AI landscape. It’s a procedural step, not a strategic shift,” said Feldman in his post.
“Our intention to go public has not changed. We will re-file our S-1 when the updated materials are ready. We’re not slowing down,” Feldman added.
Cerebras (CBRS) conducted a $1.1 billion funding round last week at a post-money valuation of $8.1 billion.