OpenAI Expands Collaborations with AMD and Nvidia as Tech Investments Surge

Groundbreaking Partnerships Announced

In a notable turn of events in the AI sector, OpenAI has entered into a substantial agreement with AMD, which has caught the attention of competitors like Nvidia. Nvidia CEO Jensen Huang reacted with surprise during a recent appearance on CNBC’s Squawk Box, expressing that he was unaware of the AMD deal prior to its announcement. This collaboration comes shortly after Nvidia committed to investing up to $100 billion into OpenAI.

Details of the AMD Agreement

TechCrunch has reported that the partnership between OpenAI and AMD is unique in structure. AMD will allocate significant portions of its stock—potentially up to 10%—to OpenAI over the coming years, depending on certain conditions such as stock price fluctuations. In return, OpenAI will utilize and assist in the enhancement of AMD’s next-generation AI GPU chips, effectively making OpenAI a stakeholder in AMD’s future.

Conversely, Nvidia’s financial engagement with OpenAI has taken a different form, as they have invested capital into the AI startup, thereby acquiring a stake in OpenAI itself.

Direct Sales and Future Infrastructure Development

While OpenAI has traditionally relied on Nvidia hardware through cloud services such as Microsoft Azure, Oracle Cloud Infrastructure, and CoreWeave, Huang noted that this will mark the first instance of Nvidia performing direct sales to OpenAI. This includes not only GPUs but also broader AI infrastructure components like systems and networking.

Huang explained that these direct sales are a strategic move to position OpenAI for when it establishes its own data centers as an independent "self-hosted hyperscaler." However, he acknowledged that OpenAI currently lacks sufficient funds to manage these expenditures, estimating that constructing a gigawatt of AI data center capacity may require between $50 billion and $60 billion, covering all associated costs.

OpenAI’s Ambitious Data Center Ventures

So far in 2025, OpenAI has initiated several large-scale infrastructure projects, notably a $500 billion partnership known as "Stargate" with Oracle and SoftBank, which includes commissioning 10 gigawatts of U.S. facilities. This effort is complemented by a separate $300 billion cloud agreement with Oracle. Additionally, OpenAI has formed a strategic alliance with Nvidia for at least 10 gigawatts of AI data center capacity and another arrangement with AMD covering 6 gigawatts.

These initiatives are part of broader strategies to expand data center capabilities in multiple regions, including the UK and other parts of Europe. Reports suggest that OpenAI could be on track to secure deals worth up to $1 trillion this year alone.

Anticipated Future Developments

During Huang’s CNBC discussion, OpenAI CEO Sam Altman simultaneously participated in an interview on the a16z Podcast. He addressed recent investment trends and indicated that the organization is poised to announce more similar deals shortly.

Altman expressed confidence in OpenAI’s evolving models and anticipated product offerings, emphasizing that the company is ready to make significant infrastructure investments to meet the expected surge in demand. Although the current revenue figures for OpenAI are not near $1 trillion—reportedly reaching around $4.5 billion in the first half of 2025—Altman is optimistic about future growth, asserting, “I’ve never been more confident in the research roadmap in front of us and the economic value these future models will generate.”

However, Altman reiterated that to make these large-scale investments feasible, collaboration across the industry is essential. “To make the bet at this scale, we need considerable support from the whole industry,” he said, hinting at forthcoming partnerships and agreements that will help propel OpenAI forward.

Conclusion

As the competitive landscape in AI continues to evolve, OpenAI’s strategic alliances with both AMD and Nvidia underscore the growing interdependence within the tech industry. Stakeholders can look forward to anticipated announcements and developments as OpenAI positions itself as a major player in the rapid advancement of artificial intelligence technologies.