Nvidia CEO Jensen Huang mentioned Wednesday that he is shocked Advanced Micro Devices supplied 10% of itself to OpenAI as a part of a multibillion-dollar partnership introduced earlier this week.
“It is imaginative, it is distinctive and shocking, contemplating they have been so enthusiastic about their subsequent technology product,” Huang mentioned in an interview with “CNBC’s Squawk Field.” “I am shocked that they’d give away 10% of the corporate earlier than they even constructed it. And so anyhow, it is intelligent, I suppose.”
OpenAI and AMD reached a deal on Monday, with OpenAI committing to buy 6 gigawatts value of AMD chips over a number of years, together with its forthcoming MI450 sequence. As a part of the settlement, OpenAI will obtain warrants for as much as 160 million AMD shares, with vesting milestones based mostly on deployment quantity and AMD’s share worth.
If OpenAI workouts the total warrant, the corporate may purchase roughly 10% possession in AMD.
AMD shares have soared because the announcement and have been up 5% Wednesday, rising a staggering 35% up to now this week. Nvidia shares have been almost 3% larger on Wednesday following Huang’s feedback.
The deal challenges Nvidia’s dominance within the AI chip trade, a market the place AMD has sought to catch up, alongside cloud suppliers that are growing their very own chips.
Nvidia late final month introduced it deliberate to take a position as much as $100 billion in OpenAI over the following decade. OpenAI agreed to construct and deploy Nvidia techniques that require 10 gigawatts of energy, which Huang mentioned on the time of the announcement is the same as between 4 million and 5 million graphics processing models (GPUs).
Huang mentioned the funding is “very completely different” from OpenAI’s take care of AMD in that it permits Nvidia to promote on to the ChatGPT creator.
Nvidia’s funding in OpenAI has underscored considerations concerning the “circular nature” of some AI infrastructure offers.
Requested how OpenAI will fund the take care of Nvidia, Huang mentioned, “They do not have the cash but.”
“They’ll have to lift that cash by means of, to begin with, their revenues, which is rising exponentially, fairness or debt,” Huang mentioned. “They gave us the chance to take a position alongside different buyers when the time comes.”
Huang added that after Nvidia beforehand invested in OpenAI, his “solely remorse is that we did not make investments extra.”
Jensen Huang, CEO of Nvidia, talking on CNBC’s Squawk Field on Oct. eighth, 2025.
CNBC
Huang additionally confirmed Nvidia’s involvement in xAI’s newest funding spherical, during which Elon Musk’s AI startup is reportedly looking for to lift about $20 billion, in response to Bloomberg. He mentioned he is “tremendous excited” concerning the financing alternative, including that he needs he may give Musk more cash.
“Virtually every little thing that Elon is a part of, you actually need to be a part of as effectively,” Huang mentioned.
Nvidia has additionally backed AI information heart operator CoreWeave, which Huang mentioned he considers one among a number of “terrific investments” made by the corporate lately.
“[They’re] actually particular corporations, they usually’re constructing, they’re a part of our ecosystem constructing out the AI infrastructure for the world,” Huang mentioned.
