AMD and ChatGPT maker OpenAI just did Samsung a big favor

As a key player in the semiconductor industry, Samsung has more than a few ways to cash in on the AI boom. As leading companies ink deals worth billions of dollars to bring their AI plans to reality, Samsung benefits.

One such agreement has been made today between AMD, which rivals NVIDIA in AI accelerators, and ChatGPT maker OpenAI, one of the world's most valuable AI companies.

OpenAI today announced that it has inked a 6 gigawatt agreement with AMD to power its next-generation AI infrastructure using AMD Instinct GPUs. It further added that the first 1 gigawatt deployment of AMD Instinct MI450 GPUs will start in the second half of next year.

OpenAI will also work with AMD as a core strategic computer partner to enable large-scale deployments of AMD AI chips. The deal goes beyond chips. AMD has issued OpenAI with a warrant of up to 160 million shares of AMD common stock, which if vesting conditions are met, could result in OpenAI taking a 10% stake in AMD.

How does this all help Samsung? The Korean giant has recently begun selling high-bandwidth memory to AMD, specifically its advanced 12-stage HBM3E. It's also expected to be among the first to supply HBM4 for AMD's MI450 chip next year.

As OpenAI has announced plans for a significant deployment of AMD's next-generation AI chips, it's evident that Samsung will have a lot more HBM orders coming its way, which will bode well for the company's semiconductor division.

Various Samsung companies and OpenAI have also signed agreements to work together on developing the required infrastructure for the future of AI, in addition to providing OpenAI with requisite semiconductor manufacturing services as well as high-bandwidth memory.