In a significant development shaking up the artificial intelligence industry, OpenAI has announced a massive computing deal that could challenge Nvidia’s long-standing dominance in AI hardware. The company confirmed it will purchase 6 gigawatts of computing power from data centers running exclusively on AMD chips, signaling a major step toward diversifying its technology base.
For years, Nvidia has been the go-to supplier for AI processors, fueling its rapid rise to become the world’s most valuable public company with a market capitalization of $4.6 trillion. Its powerful GPUs have powered everything from ChatGPT to large-scale video generation systems. However, OpenAI’s new partnership with AMD marks a bold move to expand beyond Nvidia’s ecosystem amid soaring demand for AI computing power.
According to OpenAI, the deal will deliver 1 gigawatt of computing power within the next year, with an additional 5 gigawatts to follow using AMD’s next-generation Instinct processors. OpenAI will also invest heavily in AMD to boost its chip development capacity, further strengthening collaboration between the two tech giants.
The financial impact was immediate. AMD shares soared by 36% in premarket trading following the announcement, while Nvidia shares dipped by 2%. Analysts described the move as a “huge vote of confidence” in AMD, with Wedbush Securities noting that this partnership positions AMD “right at the center of the AI chip spending cycle.”
AMD CEO Lisa Su called the partnership “the world’s most ambitious AI buildout,” while OpenAI CEO Sam Altman said it would “accelerate progress and bring the benefits of advanced AI to everyone faster.”
Despite the new deal, OpenAI emphasized that the AMD collaboration is “incremental” to its ongoing work with Nvidia, suggesting that both partnerships will continue to play key roles in powering future AI innovation.
This shift comes amid a surge of massive investments in AI infrastructure. OpenAI recently signed a $300 billion agreement with Oracle for data center space and a $10 billion chip design deal with Broadcom. Experts say these moves show how the company is strategically spreading its bets to secure long-term computing capacity.
As competition intensifies, Nvidia, AMD, and other major players like Microsoft, Google, and Tesla are all racing to dominate the next era of AI technology — one defined by power, scale, and innovation.
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