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The
so-called AI “supercluster” is an enormous, interconnected group
of high-performance computers designed to work together as a
single system.
AMD shares rose 1.4% in early trading Tuesday, while Oracle
slipped 2.9%.
The companies said that next-generation AI models are poised to
outgrow the limits of current AI infrastructure.
The expanding AMD-Oracle partnership is the latest in a flurry
of intertwined deals in recent months involving top AI
developers that are flooding the booming AI sector with
resources and money.
On Monday, ChatGPT maker OpenAI announced that it is working
with chipmaker Broadcom to design its own artificial
intelligence computer chips.
Last week, AMD said it will supply its chips to OpenAI in a
joint effort to build up AI infrastructure. OpenAI will also get
the option to buy as much as a 10% stake in AMD.
Chipmaker Nvidia said in September that it would invest $100
billion in OpenAI as part of a partnership to add at least 10
gigawatts of Nvidia AI data centers to boost OpenAI's computing
power.
OpenAI doesn’t turn a profit, but the privately held San
Francisco company is now the world’s most valuable startup, with
a market valuation of $500 billion, raising concerns that an AI
bubble is looming.
Some industry analysts and financial institutions fear that the
rapid growth in tech stock prices have stretched companies'
market valuations beyond their actual worth, comparable to the
peak of the 2000 dotcom bubble, which eventually deflated and
led to a recession.
Last week, the Bank of England flagged the growing risk that
tech stock prices pumped up by the AI boom could burst.
Shares of AMD and Oracle, have soared about 80% this year.
Neither company gave a dollar figure for their expanded
partnership.
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