OpenAI’s Latest Move Sends AMD Soaring and Nvidia Sliding

Meme culture advises playing all sides to end up on top, and OpenAI took that to heart. Despite its heavy commitments to NvidiaNVDA

, the ChatGPT creator just inked a blockbuster deal with AMDAMD

. The news sankNVDA

on Monday as the sixth-largest chipmaker aimed to close the gap with a 23.7% surge.

• OpenAI secured up to six gigawatts of new computing power from AMD and a 10% equity stake warrant — a deal expected to deliver “tens of billions” in revenue.
• Just two weeks ago, OpenAI pledged $100B to Nvidia for data center chips — joining $10B in BroadcomAVGO
  semiconductor design and $300B for Oracle’sORCL
  servers.

Musical chips: As chip demand goes parabolic, analysts note OpenAI’s shuffle aims to diversify its supply chain reliance — a move that challenges Nvidia’s dominance. It comes as AMD’s MI355X chip already outperforms Nvidia’s Blackwell in 9 out of 10 metrics, while its data center sales surged 57% in Q1. Still, other analysts warn the AI spending spree has detached from reality, as FOMO fuels stock market gains instead of fundamentals. For now, OpenAI is shaking markets with its every move, yet one can’t help but wonder how long this rally will last.