Lisa Su, AMD CEO, and Greg Brockman, OpenAI co-founder and president, discuss their multi-year partnership, why OpenAI chose AMD chips to meet soaring AI demand, and how the deal strengthens the broader ecosystem.

The release of Open AI's ChatGPT has accelerated the development of artificial intelligence and warnings about its impact on society.

Rise of AI

OpenAI and AMD have entered into a substantial five-year agreement to increase computing capacity for artificial intelligence. The partnership is described as a major development for both companies and the broader AI industry, with AMD providing large-scale chip deployments to support OpenAI's expanding needs. 

Executives from both companies emphasized the importance of having diverse and robust compute suppliers to meet the surging demand for AI services. The deal includes provisions for long-term collaboration and performance-based alignment, with both companies expecting significant financial and technological benefits as AI adoption grows.

OpenAI co-founder: We need as much compute power as we can get

Shares of AMD are surging. Do I use that word surging. How about like colossal gain. A company announced a massive new five year deal with open AI. Cannot explain to people how big this is. Joining us now first on CNBC CEO Lisa Sue and opening eyes co-founder and president Greg Brockman. Congratulations to both. Lisa I'd like to start with you. OK. Yeah. Good morning. Great to see you guys. Great to see you. Now Lisa this is a huge coup because I think a lot of people felt that you were no need. Nowhere near NVIDIA in terms of being able to power in terms of compute. Why don't you tell us why you think what you've done in the last two years that make people realize that. Wait a second. This is not a one horse game. Well first of all Jim it's great to be here with this morning. It's a big day for AMD. It's a big day for our relationship with open AI. And frankly I think it's an important day for the industry. Right. What we're seeing is there's just a massive demand for more compute. I mean there's so many applications for AI. There's so many places where we'd like to see it used. And you know compute is the foundation of that. So we're super excited to announce this deal with open AI. I think it has been something that we've been working on for a long time. And I think it says a lot about sort of the importance of having the right compute technology to really power this next wave of of AI. So very very exciting. It's a huge deal. You know six gigawatts is a massive deployment at scale. And you know we love working with them open. I'm truly a leader in this this great industry. OK so Greg I've not I've not been able to meet you and I feel remiss. Obviously you're one of the most important people in this war in this world of AI. I wanted to ask you a lot of people feel that there was a deal that you made with Nvidia and was it something I was loathsome. People were saying it was circular. I thought that was just blasphemy because I felt that they really were going to go to whoever else had great power. You went to Lisa and Andy. Why. What what attracted you. What did what was in the chips that you felt made it so you didn't just need Nvidia. We need as much computing power as we can possibly get. I think the whole industry right now is trying to really adapt to the amount of demand for AI services that we see coming over the next couple of years. And I think that when it comes to the suppliers of this computing power I think that Nvidia has something very special. We use them for training use them for inference. Andy I think also is really sort of delivering in terms of the next generation of chip that they've been working on. We've been providing feedback. We've been doing a lot of software work to be able to enable it for inference within our infrastructure. And we really see the whole ecosystem as being something that's coming together to deliver the amount of inference that will be required to bring AI to everyone at scale. And why the warrant deal. Was it not enough to just have a terrific partnership. Yeah maybe. Let me make a comment on that. You know first of all I think we have to get really on this big picture of you know Sam and Greg need more AI compute. And you know our job is to deliver that. You know the thought process around the warrants is you know it's actually hard to build these huge gigawatt deployments and data centers. And we want to make sure that this is a long term deal. So it is really an opportunity for us to align AMD and open AI together over the long term. And the idea is you know as open AI deploys compute you know that's a huge benefit to AMD in terms of the number of the amount of revenue that we get from that. You know every gigawatt of compute is significant. Double digit billions of revenue to us. And as part of that we have to work really closely together to make sure those deployments are super successful. And as we do that you know open AI gets to benefit from some of the success of our work together. So it really is the best in terms of tying performance to each other. And you know I want open AI to be extraordinarily successful. And this gives open AI a reason to want us to be successful as well. Lisa can you can you talk a bit about how the the dynamic the element of the of the ownership in AMD came about and how you see that playing out. Well this is like a this is like a new world. When you talk about the type of scale that we're trying to build the capital intensity of what you need to do and frankly the long term partnership that you need for this type of stuff to be successful. And as Greg said you know we've been working with open AI for some time. They've given us really good feedback and frankly they have some of the best engineers in the world and they actually give us a lot of feedback on what we can do better. And so our roadmap today is really exciting. Today we are shipping the M.I. 350 which has great adoption but we're even more excited about our next generation. You know M.I. 450. And this was an opportunity for us to go big together and ensure that the companies are completely aligned as we go forward over the next few years. And the beauty of this is it's all performance related. Right. We have to perform and build great chips which we're confident of. You know open AI has to have all the best models out there to consume all this compute. And together we're going to optimize and ensure that the roadmap is really strong going forward. And I think on the call you did say it would be highly accretive to both revenue and earnings. That's right. That's right. This is a great opportunity for us to really turbocharge our A.I. footprint. It is significantly accretive to AMD shareholders on day one. And as open AI deploys more we continue to have accretion in terms of revenue growth as well as earnings. And most importantly we get a long term partner to address all of this A.I. compute that the world needs.

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OpenAI co-founder: We need as much compute power as we can get

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Rise of AI