Nvidia Stock Gains as Huang Says He’s ‘Surprised’ AMD Is ‘Giving Away 10% of the Company Before They Even Built It’

Nvidia CEO Jensen Huang said he’s “surprised” AMD offered 10% of its company to OpenAI, calling the move “clever” but unexpected as both chipmakers race to dominate the booming AI hardware market.

Nvidia (NVDA) CEO Jensen Huang has weighed in on rival chipmaker AMD’s (AMD) massive partnership with OpenAI, calling the deal “clever” but saying he’s “surprised” the company offered such a large stake to the ChatGPT creator.

“It’s imaginative, it’s unique and surprising, considering they were so excited about their next generation product,” Huang told CNBC’s Squawk Box on Wednesday. “I’m surprised that they would give away 10% of the company before they even built it. And so anyhow, it’s clever, I guess.”

AMD Offers 10% Stake to OpenAI in Strategic Partnership

AMD’s multibillion-dollar agreement with OpenAI, announced earlier this week, includes a commitment from OpenAI to buy up to 6 gigawatts worth of AMD chips, including its upcoming MI450 series. The deal also gives OpenAI warrants to purchase up to 160 million AMD shares, equivalent to roughly 10% of the company, based on performance and deployment milestones.

If fully exercised, the warrants would make OpenAI one of AMD’s largest shareholders. The agreement means AMD’s growth will now rise or fall with OpenAI’s AI expansion.

Nvidia Expands Its Own Partnership with OpenAI

Huang contrasted AMD’s deal with Nvidia’s own $100 billion investment plan announced last month. Under that arrangement, OpenAI will build and deploy Nvidia systems requiring 10 gigawatts of power, equivalent to between four and five million GPUs.

“The investment is very different from OpenAI’s deal with AMD,” Huang said. “It allows us to sell directly to the ChatGPT creator.”

Huang’s comments tell us how Nvidia’s approach is designed to strengthen its position as the direct supplier behind the world’s most powerful AI models.

AI Partnerships Raise Funding Questions

The surge in billion-dollar AI infrastructure deals has sparked debate about how much of the spending is self-reinforcing. When asked how OpenAI plans to fund its new commitments, Huang said the company still needs to raise capital.

“They don’t have the money yet,” he said. “They’re going to have to raise that money through, first of all, their revenues, which is growing exponentially, equity or debt.”

He added that Nvidia may participate in future OpenAI fundraising rounds, saying, “My only regret is that we didn’t invest more.”

AMD Challenges Nvidia’s Leadership in AI Chips

AMD’s deal with OpenAI showcases one of its most ambitious moves yet in its effort to compete with Nvidia’s dominance in the AI chip market. Nvidia continues to lead global GPU production, while AMD is leveraging new partnerships to close the gap and capture more data-center spending.

The rivalry between the two chipmakers is now defining the direction of the AI hardware race.
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