OpenAI has announced a multibillion-dollar partnership with Advanced Micro Devices (AMD) to develop AI data centers powered by AMD processors, marking a significant challenge to Nvidia's dominance in the market. The five-year deal includes a commitment from OpenAI to purchase 6 gigawatts of AMD chips, starting with the MI450 model, as demand for AI computing power continues to surge.

OpenAI has struck a deal with AMD that allows the AI company to take a 10% stake in the chipmaker, while deploying 6 gigawatts of AMD's Instinct GPUs over the coming years. This partnership, which includes a warrant for up to 160 million shares, is set to alleviate OpenAI's compute power limitations and positions AMD as a key player in the AI industry. The deal also reflects the evolving interdependencies in the AI supply chain, with OpenAI actively building its infrastructure capabilities.