Nvidia CEO Jensen Huang joins 'Squawk Box' to discuss details of the company's partnership with OpenAI, his thoughts on OpenAI's deal with AMD, state of the AI tech race, the promise of AI technology,

The deal calls for OpenAI to establish 6 gigawatts of computing capacity using AMD’s chips over the next several years. Those chips are the most direct competitor to Nvidia’s AI processors that generate more than $146 billion in annual data center revenue now and are expected to run up to $226 billion worth of annual sales in the next 12 months,

OpenAI signed a deal in May to build out a one-gigawatt data center complex in the United Arab Emirates, a deal that was brokered by the Trump administration. Oracle, Nvidia, Softbank, Cisco and G42, a royals-backed Emirati AI company, are set to back the project.

OpenAI partners with semiconductor giant AMD to utilize next-generation graphics processing units for powering AI advancements.

The five-year agreement will challenge Nvidia’s market dominance and gives OpenAI 10% of AMD if it hits milestones for chip deployment.

OpenAI's (OPAI.PVT) valuation has soared to $500 billion, according to The Wall Street Journal and other sources, replacing Elon Musk's SpaceX (SPAX.PVT) as the most valuable startup. This bullish artificial intelligence (AI) news is sending stocks like Samsung (005930.