OpenAI says it’s buying AMD chips to get more compute power. Analysts also see benefits to diversifying away from Nvidia and likely securing favorable pricing.

The deal opens the door for OpenAI to own a 10% stake in AMD. However, CEO Sam Altman says his company is still committed to buying GPUs from longtime partner Nvidia.

One example of AI factories coming to pass is the British government's goal to expand the country's AI computing infrastructure by 20 times over the next five years. To that end, the U.K. partnered with OpenAI, and in turn, OpenAI enlisted Nvidia to provide as much as 31,000 AI chips.

The tech giants intend to bring at least 10 gigawatts of AI capacity online, starting in H2 2026 with Vera Rubin chips.

Analysts are getting even more bullish on market leaders, with more upgrades for NVIDIA and AMD. Firms like Morgan Stanley, TD Cowen, and Citi just raised their price targets, thanks again to progress with artificial intelligence.

The deal is a huge shot in the arm for AMD, which has been playing second fiddle to Nvidia in the GPU game for the last several years. While Nvidia's stock is up over 1,300% in the last three years as it became the largest publicly traded company in the world, AMD is up a comparatively soft 200% in the same period.

OpenAI will use Nvidia's $100 billion gradual investment to fund the development of 10 gigawatts' worth of AI data centers.

CEO, Jensen Huang, shrugged off concerns regarding competition from Advanced Micro Devices Inc. (NASDAQ:AMD), following the latter’s recent partnership with ChatGPT-parent OpenAI. NVDA is performing well relative to peers.

Microsoft Azure announced the NDv6 GB300 VM series, which the company said is the first supercomputing-scale production cluster of NVIDIA GB300 NVL72 systems, built for OpenAI .... - Read more from Inside HPC & AI News.