OpenAI made a huge investment in AMD this morning, prompting the company’s market cap to rise by around $100 billion. This may help the manufacturer remain competitive next to Nvidia’s rapid gains.

The AI developer also plans to invest $100 billion into Nvidia, one of the world’s largest tech companies. By favoring both firms, OpenAI could prevent monopoly-like conditions from harming innovation.

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OpenAI’s AMD Deal

This morning, OpenAI announced a massive deal with AMD, a US chip manufacturer, to deploy 6 gigawatts of its GPUs. This arrangement brought a huge boost to AMD’s stock, causing some observers to speculate that it caused a major Robinhood outage.

At this rate, the company may break impressive stock trading records:

However, some analysts have looked a little deeper into this deal. OpenAI CEO Sam Altman called the AMD deal “a major step” in “[realizing] AI’s full potential,” but there may be an unspoken motive too.

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Author: Landon Manning