Advanced Micro Devices (AMD) has signed a significant deal with OpenAI to supply up to 6 gigawatts of AMD Instinct graphics processing unit (GPU) power for OpenAI's next-generation infrastructure. This agreement marks a major competitive victory against NVIDIA.
The deal, which also includes OpenAI taking a 10% stake in AMD, directly challenges NVIDIA's long-standing dominance in the AI chip market. This substantial commitment from OpenAI indicates a strategic diversification of its hardware suppliers.
While AMD's CEO Lisa Su acknowledged that software remains a challenge, this deal represents a material shift in the AI arms race. It could impact NVIDIA's market share and pricing power, as a key AI customer commits to a rival's hardware on a large scale.
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