AMD Challenges Nvidia’s AI Dominance with OpenAI GPU Deal

AMD has entered direct competition with Nvidia in the AI chip market through a multi-billion-dollar GPU supply deal with OpenAI. The agreement marks a significant shift in the $250 billion AI data center industry, where Nvidia currently holds near-monopoly status with 90%+ market share.

The partnership echoes historical dynamics—30 years after AMD served as Intel's antitrust foil, it now plays a similar role against Nvidia. AMD shares surged 43% this week following the announcement, their strongest performance since 2016, adding $114 billion in market capitalization.

Bloomberg Intelligence analyst Mandeep Singh notes: "Nvidia's stranglehold finally faces credible competition." The deal could generate "double-digit billions" for AMD, challenging the symbiotic relationship between Nvidia and OpenAI—the chipmaker has invested heavily in the AI pioneer's infrastructure.