OpenAI Teases New Major Deals Despite Collaborations with Oracle, Nvidia, and AMD

Bassyonni

ago 3 hours

OpenAI Teases New Major Deals Despite Collaborations with Oracle, Nvidia, and AMD

OpenAI continues to make headlines with significant developments in its business strategy. Recently, the company has formed major partnerships, including a surprising multibillion-dollar deal with AMD. This shift comes as OpenAI’s CEO Sam Altman prepares for more initiatives amid its existing arrangements with Oracle and Nvidia.

OpenAI’s Major Deals and Collaborations

The deal with AMD has raised eyebrows across the tech industry. Under this agreement, AMD has committed to providing substantial amounts of stock to OpenAI, potentially up to 10% of the company over several years. This stock grant is contingent upon performance metrics, including stock price increases.

In return, OpenAI will leverage AMD’s next-generation AI GPU chips. This unique collaboration makes OpenAI a shareholder in AMD, contrasting with its existing relationship with Nvidia, which has invested significantly in OpenAI and, therefore, holds equity in the startup.

Nvidia’s Investment in OpenAI

Nvidia’s CEO Jensen Huang discussed the dynamics of their collaboration, revealing that OpenAI will now purchase directly from Nvidia. Though OpenAI has used Nvidia’s technology extensively through third-party cloud services like Microsoft Azure, this marks a new phase in their partnership.

Huang elaborated that the direct sales of AI hardware would include various systems and networking equipment vital for OpenAI’s ambition to eventually become a self-sufficient hosting provider. However, he noted that OpenAI may currently lack sufficient funds to cover these massive operational costs, estimated at $50 to $60 billion for every gigawatt of AI data center infrastructure.

OpenAI’s Expansive Infrastructure Plans

In 2025, OpenAI has made substantial strides by commissioning 10 gigawatts of facilities through its $500 billion Stargate agreement with Oracle and SoftBank. Additionally, it has signed a $300 billion cloud deal with Oracle, and its partnership with Nvidia includes at least 10 gigawatts of capacity. Meanwhile, the agreement with AMD is aimed at achieving 6 gigawatts, comprising a broader strategy that also involves expanding facilities in the U.K. and other parts of Europe.

10 gigawatts commissioned through Stargate deal with Oracle and SoftBank.
$300 billion cloud deal with Oracle.
10 gigawatts from Nvidia partnership.
6 gigawatts targeted under AMD deal.

Notably, OpenAI’s total value of deals in 2025 is estimated to approach $1 trillion, emphasizing a bold approach towards infrastructure development.

Future Outlook and Strategic Partnerships

Altman emphasized the importance of these partnerships, noting that OpenAI cannot achieve its ambitious plans alone. Future products are envisioned to be significantly more powerful, creating substantial demand that justifies the heavy investments.

Despite OpenAI’s revenue being significantly lower than projected, hitting $4.5 billion in the first half of 2025, Altman expressed confidence in the company’s trajectory. He believes that the strategic collaborations will lead to enhancing its research capabilities and economic output in the long run.

Looking ahead, Altman has assured stakeholders to expect more from OpenAI in the coming months, highlighting a proactive stance in securing necessary support from industry players. With ongoing negotiations and potential new deals, the tech sector should stay alert as OpenAI continues its ambitious expansion.