AMD has announced a multi-billion dollar deal with OpenAI to deploy 6 gigawatts of its AI chips, challenging Nvidia’s dominance in the AI hardware market. This partnership aims to diversify OpenAI’s hardware suppliers and bolster AMD’s position amid Nvidia and Intel’s recent collaboration on AI chip integration.
AMD has announced a new multi-billion dollar deal with OpenAI, marking a significant move to challenge AI leader Nvidia. This announcement comes shortly after Nvidia and Intel revealed plans to collaborate on custom data center and consumer chips that combine Intel’s CPUs with Nvidia’s GPUs. As part of that collaboration, Nvidia also announced it would acquire approximately $5 billion worth of Intel shares. This partnership between Nvidia and Intel has raised concerns for AMD, as it threatens to erode a key competitive advantage AMD holds over Nvidia.
Historically, only AMD and Intel have been licensed to manufacture x86 chips, the architecture that powers the majority of desktops, servers, and laptops worldwide. The Nvidia-Intel deal allows Nvidia’s GPUs, which are critical for AI applications and graphics-intensive tasks, to be closely integrated with Intel’s x86 CPUs. This integration could potentially give Nvidia and Intel a strong foothold in the AI chip market, putting pressure on AMD’s position.
In contrast, Nvidia recently announced plans to invest $100 billion in OpenAI, enabling the AI company to deploy at least 10 gigawatts of Nvidia systems in its data centers to train and run next-generation AI models. However, this deal between Nvidia and OpenAI is still in the letter of intent stage and has not been finalized. The first deployments under this agreement are expected to come online in the second half of 2026.
AMD’s deal with OpenAI involves the deployment of 6 gigawatts of AMD’s AI chips, starting with a 1-gigawatt deployment of AMD’s Instinct MI450 GPUs next year. This partnership represents AMD’s most significant win in its efforts to compete with Nvidia’s dominance in the AI chip market. Additionally, it helps OpenAI diversify its hardware suppliers and reduce its reliance on Nvidia’s GPUs, which have been the backbone of many AI workloads.
While neither AMD nor OpenAI disclosed the exact value of the deal, AMD indicated that the partnership is expected to generate tens of billions of dollars in revenue. This deal underscores the growing competition in the AI hardware space and highlights AMD’s strategic push to become a major player in powering the next generation of AI technologies. For more detailed information, viewers are encouraged to check out the full article linked in the video description.