Particle.news
Download on the App Store
88 ARTICLES
·
1h ago

OpenAI’s AMD Deal Deepens AI Mega-Ties as Scrutiny of ‘Circular’ Financing Mounts

Analysts warn supplier-funded arrangements may inflate reported demand, testing the sustainability of trillion‑scale buildouts.

AI (Artificial Intelligence) letters and robot hand are placed on computer motherboard in this illustration created on June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
Flowers bloom outside the Bank of England building in London, Britain, August 4, 2025. REUTERS/Corey Rudy/File Photo
The Stargate AI data center in Abilene, Texas
OpenAI CEO Sam Altman speaking at the company's "Dev Day" on Oct. 6. Among the company's big announcements at the event was that they are integrating apps directly into ChatGPT.

Overview

  • OpenAI confirmed a multiyear pact to deploy about 6 gigawatts of AMD GPUs and received warrants to buy up to a 10% stake in AMD, a move that diversifies its chip supply beyond Nvidia.
  • September disclosures outlined a separate, reciprocal arrangement in which Nvidia would invest up to $100 billion in OpenAI as the AI lab commits to multi‑gigawatt Nvidia systems.
  • New reporting says Nvidia is set to participate in a $20 billion equity‑and‑debt vehicle for Elon Musk’s xAI, including up to $2 billion of Nvidia equity, to finance Nvidia chips that the startup would rent for its Colossus 2 site.
  • Market reactions have been extreme, with AMD briefly adding roughly $100 billion in value after the OpenAI announcement and Oracle previously gaining about $255 billion in a single session on AI guidance.
  • Goldman Sachs and other commentators highlight risks of ‘circular’ revenue and heavy capex as OpenAI pursues vast infrastructure despite large reported losses, even as Dell raises its long‑term outlook citing robust AI hardware demand.