OPENAI SIGNS MAJOR CHIP DEAL WITH AMD AS AI HARDWARE DEMAND SURGES

OpenAI has reached a new agreement with AMD to secure advanced AI chips for its next-generation data centers, according to a report from the National Post.

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The deal represents a significant diversification of OpenAl’s hardware supply chain, which has until now been dominated by NVIDIA's GPUs, and highlights the intense global competition for the computing power driving the artificial intelligence boom.

AMD EMERGES AS OPENAI’S SECOND SOURCE

The partnership positions AMD as a critical secondary supplier to OpenAl as the company scales the infrastructure behind ChatGPT, GPT-5, and its forthcoming enterprise Al systems. Under the deal, AMD will provide a substantial allocation of its Instinct MI300X accelerators, a chip line designed to compete directly with NVIDIA‘s H100 and H200 processors.

According to industry insiders familiar with the agreement, OpenAl intends to deploy the chips in both its Microsoft Azure-hosted clusters and its planned Stargate supercomputing facility — a massive $100 billion project announced earlier this year to handle the exponential growth in Al model training workloads.

The addition of AMD hardware will help OpenAl mitigate the growing risk of supply shortages and cost bottlenecksthat have plagued the Al industry since late 2023, as demand for NVIDIA's GPUs has far outstripped production capacity.

NVIDIA’S DOMINANCE UNDER PRESSURE