On Monday, after years of trailing behind Nvidia, AMD at last reached its moment under the spotlight, when OpenAI signed a multibillion-dollar sovereign AI infrastructure deal with the chip company, driving its stocks up and reviving investor confidence.
For a decade, AMD struggled to become a big-league player in the AI and semiconductors market, often overshadowed by the dominance of its cousin, chip giant Nvidia.
The OpenAI-AMD AI infrastructure partnership is a twist, one that risks redefining the chip maker’s future and entire race for sovereign AI infrastructure.
AMD Stock Struggled to Overcome Market Uncertainty
Despite continuous advancements in chip design, AMD’s AI product offerings lagged its competitor’s technology which captured most of the Nvidia AI chip market share 2025.
All that changed when OpenAI committed to using AMD’s new MI450 series GPUs as part of a longer-term AI infrastructure investment, paving the way for a new generation of AI computing.
AMD’s new MI450 series GPUs, stand out for their high AI performance, energy efficiency, and scalability, making them ideal for sovereign AI infrastructure and large-scale data center deployments.
AMD shares increased more than 30%, adding around $80 billion to their market value, marking the biggest one-day gain in 10 years. The news was affirmed by analysts as the lucky push AMD has been looking for.
“We view this deal as certainly transformative, not just for AMD, but for the dynamics of the industry,” said Forrest Norrod, AMD’s executive vice-president.
The deal will give OpenAI a channel to thousands of AMD’s significant chips starting 2026, as well as the option to buy up to 160 million shares of AMD stock for one cent per share. AMD expects tens of billions of dollars a year in revenue due to the investment in AI ready infrastructure, with total profits likely to exceed $100 billion within four years.
Is Nvidia Monopoly Jeopardizing AMD’s Market Growth?
For OpenAI, the partnership is not just about chips, but it is about building AI infrastructure that is stable and ready to support its wide expansion. CEO Sam Altman said, AMD will help OpenAI “build enough AI infrastructure” to meet its needs, a strategic step toward expanding large-scale computing power.
Since the widespread AI wave, and till now, the Nvidia monopoly profits challenge the market presence of AMD. With the sector questioning whether Nvidia monopoly is jeopardizing AMD’s market growth?
AMD’s resurgence illuminates how emerging competition can reshape the Nvidia/AMD chip wars and AI export controls.
“AMD has really trailed Nvidia for quite some time. So I think it helps validate their technology,” said Leah Bennett, chief investment strategist at Concurrent Asset Management.
AMD’s new chips are designed to host data centers that contain 6 gigawatts of power, enough to supply millions of homes. OpenAI starts building a one-gigawatt facility next year, a giant leap in building AI infrastructure.
Still, meeting AI infrastructure requirements challenges remain.
Both OpenAI and AMD will need to focus on adjusting AI infrastructure and operations fundamentals to provide efficiency and long-term resilience in the competitive industry they’re in.
AMD must keep on perfecting its software-hardware synergy to overcome its AMD AI chip software struggles, while OpenAI worries about how to finance such vast expansion in the face of growing operational costs. But one thing for sure, for the first time in years, AMD is not just a challenger, but a player in building the next era of sovereign AI infrastructure, reclaiming a seat at world tech power’s table.
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