OpenAI is reportedly in discussions with AMD to develop AI chips, marking a significant strategic move to reduce its heavy reliance on Nvidia’s hardware. The potential deal, which could materialize in 2025, represents OpenAI’s effort to diversify its chip supply chain and potentially lower costs in AI model training and deployment. This development comes amid a global shortage of AI chips, particularly Nvidia’s GPUs, which has created bottlenecks in AI development across the industry. The partnership could involve AMD creating custom AI accelerators specifically for OpenAI’s needs, similar to how other tech giants like Microsoft and Amazon have developed their own AI chips. This move reflects a broader industry trend where major AI companies are seeking alternatives to Nvidia’s dominant position in the AI chip market. The article highlights that while Nvidia currently controls approximately 80% of the AI chip market, AMD’s potential collaboration with OpenAI could significantly alter the competitive landscape. The deal could also benefit AMD by providing them with valuable insights into advanced AI workloads, helping them develop more competitive products. However, experts note that challenging Nvidia’s technical leadership won’t be easy, as their CUDA software ecosystem remains a significant advantage. The potential partnership underscores the growing importance of hardware independence in the AI industry and could influence future market dynamics.
Source: https://www.businessinsider.com/openai-amd-chips-deal-nvidia-ai-2025-10