Nvidia's Huang says he's surprised AMD offered 10% of the company in 'clever' OpenAI deal

Nvidia CEO Jensen Huang said Wednesday that he's amazed Advanced Micro Devices offered 10% of itself to OpenAI arsenic portion of a multibillion-dollar partnership announced earlier this week.

"It's imaginative, it's unsocial and surprising, considering they were truthful excited astir their adjacent procreation product," Huang said successful an interrogation with "CNBC's Squawk Box." "I'm amazed that they would springiness distant 10% of the institution earlier they adjacent built it. And truthful anyhow, it's clever, I guess."

OpenAI and AMD reached a woody connected Monday, with OpenAI committing to acquisition 6 gigawatts worthy of AMD chips implicit aggregate years, including its forthcoming MI450 series. As portion of the agreement, OpenAI volition person warrants for up to 160 cardinal AMD shares, with vesting milestones based connected deployment measurement and AMD's stock price.

If OpenAI exercises the afloat warrant, the institution could get astir 10% ownership successful AMD.

The woody challenges Nvidia's dominance successful the AI spot industry, a marketplace wherever AMD has sought to drawback up, alongside unreality providers which are processing their ain chips.

Nvidia precocious past period announced it planned to put up to $100 billion successful OpenAI implicit the adjacent decade. OpenAI agreed to physique and deploy Nvidia systems that necessitate 10 gigawatts of power, which Huang said astatine the clip of the announcement is adjacent to betwixt 4 cardinal and 5 cardinal graphics processing units (GPUs).

Huang said the concern is "very different" from OpenAI's woody with AMD successful that it allows Nvidia to merchantability straight to the ChatGPT creator.

Nvidia's concern successful OpenAI has underscored concerns astir the "circular nature" of immoderate AI infrastructure deals.

Asked however OpenAI volition money the woody with Nvidia, Huang said, "they don't person the wealth yet."

"They're going to person to rise that wealth through, archetypal of all, their revenues, which is increasing exponentially, equity oregon debt," Huang said. "They gave america the accidental to put alongside different investors erstwhile the clip comes."

Huang added that aft Nvidia antecedently invested successful OpenAI, his "only regret is that we didn't put more."