The OpenAI logo appears on a mobile phone in front of a computer screen with random binary data, March 9, 2023, in Boston. (AP Photo/Michael Dwyer, File)
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One of the leading AI companies globally is gearing up for further expansion following a significant agreement between OpenAI and AMD, a major player in the chipmaking industry. This deal is valued at billions of dollars.
The creators of ChatGPT have significantly boosted AMD’s market value by $96 billion by deciding to purchase 6 gigawatts of AMD’s graphics processing units (GPUs).

“Our collaboration with OpenAI is likely to generate tens of billions in revenue for AMD, while also speeding up OpenAI’s development of AI infrastructure,” stated AMD’s chief financial officer, Jean Hu.

The OpenAI logo appears on a mobile phone in front of a computer screen with random binary data, March 9, 2023, in Boston. (AP Photo/Michael Dwyer, File)
OpenAI has grown massively since being founded in late 2015. (AP)

This deal was announced just days after OpenAI’s CEO, Sam Altman, disclosed plans to establish AI data centers across the globe. These centers could consume up to 10 gigawatts of power, with an existing usage of another 17 gigawatts.

That amount is comparable to the 10 gigawatts New York City uses in the summer and five gigawatts used by San Diego during its 2024 heatwave. 

Experts have also likened the energy consumption used by OpenAI to the amount required by entire countries.

“Ten gigawatts is more than the peak electrical demand of countries like Switzerland or Portugal, and seventeen gigawatts could essentially power both nations at once,” explained Cornell University professor Fengqi You.

This July 13, 2010, file photo, shows an entrance to the Advanced Micro Devices Inc. (AMD) headquarters in Sunnyvale, Calif.
AMD and OpenAI have agreed to a multibillion-dollar deal. (AP)

Andrew Chien, a professor of computer science at the University of Chicago, mentioned to Fortune that the energy usage might match what “the entire economy consumes”.

“I’ve been a computer scientist for 40 years, and for most of that time, computing was the tiniest piece of our economy’s power use.

“A year and a half ago, they were talking about five gigawatts.

“Now they’ve upped the ante to 10, 15, even 17.

“There’s an ongoing escalation.”

Professor Jeannie Patterson from the Centre of AI and Digital Ethics at the University of Melbourne believes there is a growing question of whether we need more powerful AI.

“While there are beneficial applications of this technology, it is frequently used to substitute human labor without providing real benefits to individuals,” she commented.

“Additionally, more generative AI doesn’t necessarily mean more accurate or safer technology.” 

Sam Altman, Co-Founder and Chief Executive Officer, OpenAI, testifies before a Senate Committee on Commerce, Science, and Transportation hearing on Capitol Hill in Washington
OpenAI CEO Sam Altman has attributed the enormous expansion to the explosive growth of AI. (AP)

Altman recently claimed ChatGPT has surpassed 800 million weekly active users.

”More than 800 million people use ChatGPT every week, and we process over 6 billion tokens per minute on the API.”

“Thanks to all of you, AI has gone from something people play with to something people build with every day,” he said.

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