A surprising twist in Silicon Valley’s power game — AMD has signed a colossal deal with OpenAI worth tens of billions of dollars, aiming to challenge Nvidia’s near-monopoly in AI computing. The collaboration will see OpenAI deploy about six gigawatts of AMD’s Instinct GPUs over several years, signaling one of the largest infrastructure expansions ever attempted in artificial intelligence.

AMD’s shares skyrocketed 24% to over $203, boosting its market cap beyond Coca-Cola and General Electric. CEO Lisa Su called it “the biggest deployment we’ve ever announced,” hinting at a turning point not just for AMD, but for the entire AI hardware ecosystem. The deal includes a bold incentive — OpenAI could buy up to 160 million AMD shares at just one cent each if certain milestones are met. That’s roughly 10% of the company’s total stock, an unprecedented stake for an AI startup.

Industry analysts say this pact could reshape competition. Nvidia still dominates the data-center GPU market, but AMD’s entry backed by OpenAI’s massive demand could finally break that grip. However, some experts warn of over-excitement — comparing today’s AI boom to the dot-com bubble of the 1990s.

Sam Altman, OpenAI’s CEO, said the company plans to spend “trillions” on infrastructure to meet the hunger for compute power. Financing remains a puzzle, but OpenAI is reportedly experimenting with new financial instruments to fund this expansion.

If successful, the partnership could generate over $100 billion in AI-related revenue for AMD by 2030. Still, it’s a risky bet — tying AMD’s future to one of the most volatile markets in tech history.

Full article: Bloomberg — AMD Signs OpenAI Deal Worth Tens of Billions