Another Day, Another Multibillion-Dollar Power Move from OpenAI

[Shekinah Brama]

It seems like every week, OpenAI is writing a new chapter in the AI arms race — and this time, it’s teaming up with Nvidia’s biggest rival, AMD. The ChatGPT-maker has announced a massive, multi-year data center deal with AMD that’s already shaking up the tech world and reigniting both optimism and anxiety about a potential AI bubble.

Here’s what’s going down:

OpenAI plans to buy enough AMD chips to generate six gigawatts of power — an enormous boost to its computing capacity for ChatGPT and other AI tools. For perspective, that’s about the same amount of energy five million U.S. homes use in a year, according to The Guardian.

But that’s not all. The deal also has a fascinating financial twist: OpenAI will gain the right to purchase roughly 10% of AMD for just one cent per share, provided it hits specific milestones and AMD’s stock continues to rise.

In return, AMD is set to rake in tens of billions of dollars in revenue over the next five years, according to CEO Lisa Su — a potential game-changer for the chipmaker that has long trailed behind Nvidia in the advanced AI hardware race. Unsurprisingly, AMD’s stock surged nearly 24% following the announcement.

How exactly is OpenAI paying for all of this?

Reports from The Information show that in the first half of this year alone, OpenAI generated $4.3 billion in revenue but still managed to lose $2.5 billion. Despite that, the company is spending like a trillion-dollar titan.

Just weeks ago, OpenAI announced a $300 billion deal with Oracle to secure 4.5 gigawatts of cloud computing power. And before that, it signed another multibillion-dollar agreement with Nvidia, under which the chip giant will invest $100 billion in OpenAI over the next decade — money OpenAI will promptly use to buy… more Nvidia chips.

The Bigger Picture: A Growing AI Bubble?

OpenAI CEO Sam Altman remains defiantly bullish, calling these deals essential for building the next generation of artificial intelligence. But critics are raising eyebrows. Many analysts warn that these circular investments — where companies pour billions into each other’s products and services — echo the overleveraged frenzy of the dot-com bubble.

Still, one thing’s certain: whether this is the dawn of a new technological golden age or a prelude to a spectacular market correction, OpenAI isn’t slowing down.

The company is betting big — not just on chips, but on the idea that AI’s future will be powered by whoever controls the most computational firepower.

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