"The AMD deal arrived on the heels of OpenAI CEO Sam Altman's Asia tour last week, during which OpenAI inked memory chip agreements with Samsung and SK Hynix and reportedly held discussions in Taiwan with TSMC, the world's largest contract manufacturer of chips. The moves suggest OpenAI is aggressively diversifying its chip supply chain beyond Nvidia - a shift that could complicate OpenAI's relationship with Nvidia, whose GPUs still power much of OpenAI's training infrastructure."
"Nvidia, which has been one of the biggest beneficiaries of the AI boom since ChatGPT debuted in November 2022, still dominates the market for "training" AI models-the compute-intensive process of teaching systems like ChatGPT from massive datasets. But "inference," or running those models in real-world applications, can use a wider range of chips. AMD and Intel, as well as newer players such as Cerebras, SambaNova, and Groq, see an opening to win business and (no pun intended) chip away at Nvidia's dominance."
OpenAI and AMD formed a multiyear partnership making AMD a major supplier of chips for training and running advanced AI models, with deployments starting in 2026. The agreement could generate tens of billions of dollars in annual revenue for AMD and includes a performance-based stock warrant tied to rollout milestones. The deal follows OpenAI's memory agreements with Samsung and SK Hynix and reported discussions with TSMC, signaling a strategy to diversify chip suppliers beyond Nvidia. Nvidia continues to dominate model training, while inference uses a broader set of chips, creating opportunities for AMD, Intel and newer AI chipmakers.
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