Thu Oct 09 07:40:00 UTC 2025: **News Article:**

**Nvidia CEO Huang Expresses Surprise at AMD-OpenAI Deal, Questions Equity Stake**

**[CITY, STATE]** – Nvidia CEO Jensen Huang raised eyebrows Wednesday, expressing surprise at the recent partnership between Advanced Micro Devices (AMD) and OpenAI, particularly the potential 10% equity stake offered to the AI powerhouse.

Speaking to CNBC, Huang described the deal as “imaginative, unique, and surprising,” specifically referencing AMD’s commitment to grant OpenAI warrants potentially amounting to 10% ownership of the company. “I’m surprised that they would give away 10% of the company before they even built it,” Huang stated, adding, “And so anyhow, it’s clever, I guess.”

The deal, announced earlier this week, involves OpenAI committing to purchase 6 gigawatts worth of AMD chips, including the upcoming MI450 series, over several years. The warrants’ vesting is tied to deployment volume and AMD’s share price. Since the announcement, AMD shares have surged, rising a remarkable 43% this week alone.

Huang contrasted the AMD deal with Nvidia’s own substantial investment in OpenAI, which he valued at potentially $100 billion over the next decade. He emphasized that Nvidia’s approach allows direct sales to OpenAI, rather than an equity exchange. He also addressed concerns about how OpenAI would finance such large deals. He said that OpenAI did not have the money yet but would raise funds through revenue, equity, or debt. He also said Nvidia would have an opportunity to invest alongside other investors.

Huang also confirmed Nvidia’s involvement in Elon Musk’s xAI, with reports suggesting a $2 billion investment in the company’s latest funding round. He also praised AI data center operator CoreWeave as one of the many terrific recent investments Nvidia has made in companies building out the AI infrastructure.

The AMD-OpenAI partnership is widely seen as a challenge to Nvidia’s dominance in the AI chip market, as AMD and cloud providers alike seek to gain ground in this rapidly growing sector. Despite AMD’s gains, Nvidia shares also rose 2% on Wednesday following Huang’s comments.

Read More