CNBC explores how AMD’s chip supply deal with OpenAI, along with alliances, cross-shareholdings, and funding loops, is shaping the AI landscape. Experts discuss the complex network of partnerships influencing technology, investment, and innovation in artificial intelligence.

Santa Clara

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

Rise of AI

The artificial intelligence sector is seeing increasingly complex alliances and cross-shareholdings among major technology companies. NVIDIA and Microsoft have stakes in OpenAI, while OpenAI is considering a significant investment in AMD. NVIDIA is also investing in Intel, which could become a manufacturing partner for AMD, creating a web of interconnected interests. 

OpenAI has also announced chip deals with Samsung and SK Hynix, seen as a strategic hedge, while maintaining close ties with AMD and South Korean partners. These developments have prompted market reactions, particularly regarding TSMC in Taiwan. As the network of partnerships grows, there are concerns about potential antitrust issues and the sustainability of OpenAI's business model, given its ongoing financial losses and efforts to develop its own chips with companies like Broadcom.

The matrix and partnerships shaping AI’s future

You know, Sherry, I was just doing a little bit of simple, I guess, math here, right? So here's what we have. This is the state of play so far to date. NVIDIA and Microsoft have stakes in OpenAI. OpenAI has a deal that could see it take a 10 percent stake, as we were talking about, in AMD. NVIDIA is taking a stake in Intel, which could in turn become a manufacturing partner for AMD. So this web of alliances and cross-share holdings, and now we've also got government intervention and taking stakes as well, it's just getting more complicated by the day. Yeah, so you lost me sort of halfway there, and I think, you know, the big story, big picture story is that there is this sort of massive, infinite money loop that is being engineered in all this. And don't get me wrong, engineered not in a negative way, although I should point out that there are critics out there that this is not really based on some sort of a new chip innovation that we haven't seen before. It's really the industry sort of trying to make this financial structure so that they are locking in with each other. So number one, where does that leave things for TSMCs of Taiwan? So I think that is one thing, because last week's announcement from OpenAI, you know, talking about those chip deals with Samsung and SK Hynix in South Korea, I totally saw that as a major hedge. So again, this is a hedge. And remember, AMD has a very close relationship, very strategic relationship with the South Koreans, Samsung Electronics and SK Hynix. So I think that leaves, you know, one of the focal points of the show today is how TSMC shares actually reacted to all this. Yeah, at least that market is open, right? We've got a whole bunch of them closed and out of play today. So, yeah, we'll check on that when the Taiwan market gets back up and running. Quick thought, though, Sherry, you know, I was talking about this complicated, it's becoming sort of a spider's web of alliances, investments, cross-shareholdings, etc. I just had a thought. I'm wondering whether at what stage or at some stage whether or not antitrust issues are going to rear their ugly head. So I think that's something to keep an eye on. And as far as OpenAI itself goes, remember, you know, they've only just recently decided to become a for-profit organization. That's one. And two, they're also working with names like Broadcom to develop their own chips. So, you know, is that are those two paths going to be or are they going to continue? Are they going to get thrown off by what AI is doing now with AMD and also with NVIDIA? I don't know, but something to watch. Yeah, I feel like everyone leans on NVIDIA to a degree, but they want to also reduce that reliance in a gradual manner because they cannot do it all and they cannot do what NVIDIA does for them now. But I think that is just there is that major urge for a lot of hyperscalers and open AIs of the world. And I think that is really the story going forward. Can they sort of step away from that very convincing, compelling ecosystem that NVIDIA has built over the years? Yeah, don't forget OpenAI is still burning a significant amount of cash, about two and a half billion last numbers I saw.

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Paris

Macron gives Lecornu two days to salvage government after resignation

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AI chipmaker AMD strikes major deal with OpenAI

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Gorakshep

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Chicago

Clashes erupt at ICE sites as Trump sends National Guard to cities

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Indianapolis

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Portland

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Jerusalem

Middle East Conflict

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Cairo

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Santa Teresa

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Washington

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Tokyo

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Tel Aviv-Yafo

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Manhattan

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Canterbury

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The matrix and partnerships shaping AI’s future

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Rise of AI