US EditionAMD: OpenAI Got A Bargain—I Wouldn’t Hold Into Earnings (NASDAQ:AMD)
OpenAI will deploy 6 gigawatts of AMD GPUs starting in late 2026 with an option to acquire up to 10% equity in AMD, aiming to diversify AI hardware beyond Nvidia.
- On October 10, 2025, OpenAI announced a multi-year, multi-generation strategic partnership with Advanced Micro Devices to deploy 6 gigawatts of AMD GPUs, starting with 1 gigawatt of MI450 GPUs in the second half of 2026 under a multibillion-dollar agreement.
- Faced with soaring compute needs, OpenAI moved to diversify suppliers beyond Nvidia and build on its 2023 AMD hardware use targeting inference workloads.
- AMD said it expects tens of billions in annual AI data-center revenue by 2027, with AMD stock surging 36% and warrants for up to 160 million shares tied to milestones.
- Industry concentration is evident as the deal intensifies AMD's challenge to Nvidia, while analysts warn it heightens monopolistic risks amid OpenAI's $500 billion valuation, prompting calls for stronger oversight.
- With parallel mega-deals, analysts warn that operational constraints like power infrastructure and financing needs threaten the sustainability of the $106B global AI inference market projected in 2025.
13 Articles
13 Articles
Incredibly creative the OpenAI agreement with AMD. The second manufacturer of GPUs for the AI after NVIDIA commits to sell you six gigawatts of chips and OpenAI undertakes to pay them, for a secret figure that can be around $100 billion. However, OpenAI does not have that money. To solve that problem, they have done a circular economy exercise. Continue reading
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OpenAI partners with AMD in $26 billion chip deal to expand AI capacity
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