ChatGPT developer OpenAI has agreed to buy billions of dollars worth of chips from AMD - in an agreement that could eventually entitle it to a 10% stake in the manufacturer, whose capitalization is about $270 billion, the Financial Times reports. The exact amount of the deal is not disclosed.

OpenAI plans to buy processors with a total capacity of 6 gigawatts, which is roughly equivalent to Singapore's average power consumption, the publication notes. The launch of 1 GW of capacity costs about $50 billion, of which two-thirds is for chips and infrastructure, says the FT.

AMD has granted OpenAI a warrant to purchase up to 160 million shares at a symbolic price of $0.01 per share. The option will be exercised gradually - as AMD reaches certain share price growth targets and OpenAI puts its chips into service. Such a stake corresponds to about 10% of the company's capital, the FT writes.

Shares of the chipmaker jumped nearly 23% in the premarket on Oct. 6.

The agreement comes just two weeks after AMD competitor Nvidia announced plans to invest $100 billion in OpenAI and deploy 10 GW of new data centers.

The news is supplemented.

This article was AI-translated and verified by a human editor

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