AMD lands $100B AI chip deal with OpenAI
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- AMD signed an agreement with OpenAI to supply hundreds of thousands of chips and let OpenAI buy up to a 10% stake, with the deal projected to generate more than $100 billion in revenue for AMD.
- AMD also struck a deal with Meta Platforms to deliver 6 gigawatts of its Instinct GPUs for AI workloads.
- AMD reported 2025 revenue of $34.6 billion, a 34 % increase over 2024, and a 26 % rise in diluted EPS, while its net margin stood at 12.3 % compared with Nvidia’s 55.6 %.
- AMD holds a 4 % share of the data‑center GPU market, double the next‑largest rival Huawei’s 2 % share, but still far behind Nvidia’s 92 % share.
- AMD’s consumer‑grade GPUs are priced lower than comparable Nvidia models, which the article cites as AMD’s strategy to win market share despite lower margins.
Why it matters: AMD secures a potential $100 billion revenue stream, expanding its AI hardware footprint and offering investors a diversification option beyond Nvidia, while Nvidia’s market share remains dominant and its higher margins keep it financially stronger. The deal reshapes the AI GPU landscape by giving AMD a foothold in high‑value contracts despite its lower profit margins.
