Will AMD Deal Make OpenAI Less Deal Crazed? Not a Chance
October 31, 2025
Why does this deal sound a bit like moving money from dad’s coin jar to mom’s spare change box? AP News reports, “OpenAI and Chipmaker AMD Sign Chip Supply Partnership for AI Infrastructure.” We learn AMD will supply OpenAI with hardware so cutting edge it won’t even hit the market until next year. The agreement will also allow OpenAI to buy up about 10% of AMD’s common stock. The day the partnership was announced, AMD’s shares went up almost 24%, while rival chipmaker Nvidia’s went down 1%. The write-up observes:
“The deal is a boost for Santa Clara, Calif.-based AMD, which has been left behind by rival Nvidia. But it also hints at OpenAI’s desire to diversify its supply chain away from Nvidia’s dominance. The AI boom has fueled demand for Nvidia’s graphics processing chips, sending its shares soaring and making it the world’s most valuable company. Last month, OpenAI and Nvidia announced a $100 billion partnership that will add at least 10 gigawatts of data center computing power. OpenAI and its partners have already installed hundreds of Nvidia’s GB200, a tall computing rack that contains dozens of specialized AI chips within it, at the flagship Stargate data center campus under construction in Abilene, Texas. Barclays analysts said in a note to investors Monday that OpenAI’s AMD deal is less about taking share away from Nvidia than it is a sign of how much computing is needed to meet AI demand.”
No doubt. We are sure OpenAI will buy up all the high-powered graphics chips it can get. But after it and other AI firms acquire their chips, will there be any left for regular consumers? If so, expect their costs to remain sky high. Just one more resource AI firms are devouring with little to no regard for the impact on others.
Cynthia Murrell, October 31, 2025
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