The United States has formed a $1 billion partnership with AMD to build supercomputers using AMD artificial intelligence chips, the chipmaker announced, the latest in a wave of deals that will eclipse the $1 billion mark around AI this year, as Wall Street anticipates global spending will accelerate in the coming years.
Chronology
October 27
The Department of Energy partnered with AMD to develop two AI-powered supercomputers in a partnership valued at $1 billion, according to AMD, which said the systems would “drive advances in science, energy and national security.”
The first computer, called “Lux,” is expected to be operational within the next six months, while the second computer, “Discovery,” is expected to be completed in 2029.
October 23
Google announced that it would supply up to one million of its artificial intelligence chips to Anthropic in a deal that both companies say could be worth tens of billions of dollars.
October 16
The executives from Oracle confirmed a cloud computing agreement with Meta valued at $20 billion, as Oracle will provide Meta with cloud computing capacity to train and deploy AI models.
October 14
The cloud business from Oracle said it would deploy tens of thousands of the newest AI chips the AMD starting in 2026, with plans to expand the partnership in 2027 and beyond, although neither Oracle nor AMD disclosed the financial terms of the deal.
October 13
OpenAI announced a partnership with Broadcom with plans for OpenAI to design and deploy its own AI chips and for both companies to jointly build and deploy 10 gigawatts of custom AI accelerators, or hardware used to accelerate AI and machine learning tasks (neither company disclosed financial terms of the deal).
October 6
OpenAI y AMD reached a deal that could reportedly allow OpenAI to take a 10% stake in the chipmaker, whose market capitalization has risen to nearly $188 billion, as OpenAI announced it would deploy up to six gigawatts of AMD graphics processing units over several years.
September 25
The cloud infrastructure company CoreWeave announced that its agreement to provide services to OpenAI was expanded by up to $6.5 billion, raising the value of OpenAI’s partnership with CoreWeave to about $22.4 billion after CoreWeave said in March it would provide OpenAI with AI data centers and cloud technology for five years.
September 22
OpenAI y Nvidia announced a partnership that includes a $100 billion investment from Nvidia in OpenAI, which it said would use at least 10 gigawatts of Nvidia systems for infrastructure used to train AI models.
September 15
CoreWeave said in a regulatory filing that Nvidia agreed to purchase cloud services valued at approximately $6.3 billion through 2032, requiring Nvidia to purchase any excess cloud computing unused by its customers.
September 10
OpenAI signed a contract with Oracle to buy $300 billion in computing power over the next five years, the Wall Street Journal reported, citing people familiar with the matter, as Oracle will provide about 4.5 gigawatts of power capacity.
August 22
President Donald Trump announced that Intel agreed to give the United States a 10% stake in the company, valued at about $10 billion, making the federal government the third-largest shareholder in the embattled chipmaker after Trump previously called for Intel CEO Lip-Bu Tan to resign.
August 10
Nvidia y AMD agreed to pay the US government 15% of revenue from chip sales in China in exchange for chipmakers receiving export licenses, shortly after Trump announced a 100% tariff on imports of semiconductors and chips, according to the Financial Times.
July 14Google announced plans to invest $25 billion in data centers and AI infrastructure over the next two years, noting it would help expand “energy capacity, innovation and opportunities in the AI-driven economy.”
June 30
Oracle in a filing with the Securities and Exchange Commission, revealed multiple “large” cloud services deals, including one valued at $30 billion that was later revealed to be with OpenAI .
May 23
Oracle announced that it will buy artificial intelligence chips of Nvidia worth $40 billion to power OpenAI’s data center in Abilene, Texas, which is believed to be the first project underway for Stargate, the Financial Times reported.
January 21
Trump announced that OpenAI , SoftBank y Oracle would create a new company, “Stargate,” in what Trump called the “largest AI infrastructure project in history,” with plans for the companies to invest up to $500 billion to develop AI infrastructure in the US in the coming years and create 100,000 jobs.
Spending on artificial intelligence creates a network of circular agreements
Most AI companies have been interconnected for years through a series of investments in each other, starting with Microsoft’s $1 billion equity deal in OpenAI in July 2019. That partnership grew in January 2023 as Microsoft’s investment grew to about $14 billion, with Microsoft becoming OpenAI’s exclusive cloud computing services provider. Amazon initially invested up to $4 billion in Anthropic in September 2023 and followed up with another $4 billion investment in November 2024, adding to Google’s $2 billion commitment to Anthropic announced in October 2023 and an additional $1 billion earlier this year. SoftBank was a major investor in OpenAI’s $40 billion funding round earlier this year and in August invested $2 billion in Nvidia, which invested $5 billion and $100 billion in Intel and OpenAI, respectively, in a pair of deals the following month. Several economists have warned that the network of investments between AI companies resembles similar deals reached during the dot-com bubble in the late 1990s, arguing that the flow of financing between companies could be excessively inflating the market. CoreWeave’s market capitalization has soared to nearly $67 billion since its initial public offering in March, as its shares have soared 221% over the past six months while the company has engaged in multiple partnerships. Other market researchers have warned that many investments in AI have yet to bear fruit: a Massachusetts Institute of Technology (MIT) study found that 95% of the 300 AI developments surveyed have not generated profits, even though companies have invested a combined total of $400 billion.
big number
375 billion dollars. Global annual spending on AI is expected to reach that figure by the end of the year, according to UBS projections. The investment bank predicts that spending on AI will reach $500 billion by 2026, and that spending on energy and resources for electrical demand will exceed $3 trillion annually by 2030. Companies will invest a total of $6.7 trillion in data centers through 2030, with the majority of spending going to systems based on AI chips, according to estimates by consulting firm McKinsey.
Is there an AI bubble?
Economists have warned that an influx of AI investments could disrupt the global market, with some equating the current business environment to the dot-com crash of 2000. Bank of America released survey results earlier this month, indicating that about 54% of investors believed AI-related assets were in bubble territory, suggesting that stocks linked to the technology They are overinflated by hype and could be subject to a crash. Bryan Yeo, chief investment officer at Singapore sovereign wealth fund GIC, said AI startups were receiving record sums of funding and argued that any company with an “AI label” would be grossly overvalued. Forbes asked several AI chatbots, including OpenAI’s ChatGPT and xAI’s Grok, about the existence of an AI bubble: Grok and ChatGPT noted there was a bubble, while Perplexity and Microsoft Copilot suggested there were signs of an “emerging” bubble, and Meta AI and Gemini said a bubble was in sight. “debatable.” Most chatbots pointed to likely unsustainable enthusiasm on the part of investors, although they also stressed that there was nothing wrong with the technology or AI-related products.
This article was originally published by Forbes US.
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