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OpenAI, AMD sign massive chips deal

Oct 6, 2025, 6:08pm EDT
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Rahul Tikoo, senior vice president and general manager of Client Business Unit for AMD, talks about the Ryzen AI Max processor for laptops during an AMD news conference at CES 2025.
Steve Marcus/Reuters

OpenAI inked a deal with chip designer AMD to collaborate on AI data centers, in a challenge to semiconductor giant Nvidia.

The deal, which caused AMD’s stock to soar, reflects the tech sector’s intensifying quest for computing power and ultimately banks on a “near-limitless demand for AI,” WIRED wrote: Running AMD’s processors will match the energy needs of 5 million American homes. The US has become “one big bet on AI,” as optimism over the sector props up the economy, one analyst wrote.

Driving that bet is OpenAI, whose CEO Sam Altman has proven to be a prolific dealmaker. The company also has agreements with firms including Nvidia and Oracle — pacts that have raised fears of an AI bubble.

Chart showing one-year performance of AMD versus the S&P 500
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