"As TechCrunch previously reported, OpenAI's deal with AMD is unusual. AMD has agreed to grant OpenAI large tranches of AMD stock - up to 10% of the company over a period of years contingent on factors like increases in stock price. In exchange, OpenAI will use and help develop the chipmaker's next generation AI GPUs chips. This makes OpenAI a shareholder in AMD."
"While OpenAI has been using Nvidia gear for years through cloud providers like Microsoft Azure, Oracle OCI and CoreWeave, "This is the first time we're going to sell directly to them," Huang explained. He added that his company would still continue to supply gear to the cloud makers, too. These direct sales, which include AI gear beyond GPUs like systems and networking, are intended to "prepare" OpenAI for the day when it is its own "self-hosted hyperscaler," Huang said."
"But Huang admits that OpenAI doesn't "have the money yet" to pay for all of this gear. He estimated that each gigawatt of AI data center will cost OpenAI "$50 to $60 billion," to cover everything from the land and power to the servers and equipment. So far, in 2025, OpenAI has commissioned 10 gigawatts worth of U.S. facilities through its $500 billion Stargate deal with partners Oracle, and SoftBank. (Plus, it penned a $300 billion cloud deal with Oracle.)"
OpenAI secured an equity-for-hardware partnership with AMD that could grant AMD up to 10% of its stock contingent on performance, in exchange for developing and using AMD's next-generation AI GPUs. Nvidia invested up to $100 billion into OpenAI, creating reciprocal ownership. OpenAI has relied on Nvidia gear through cloud providers but will now buy directly, including systems and networking, to prepare for operating its own data centers as a self-hosted hyperscaler. OpenAI currently lacks full funding for this buildout, with costs estimated at $50–$60 billion per gigawatt. OpenAI has commissioned 10 gigawatts in 2025 through a $500 billion Stargate partnership and holds a $300 billion cloud agreement.
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