OpenAI’s Sam Altman Promises More Major Deals After Stargate, Oracle, Nvidia, and AMD
Image Credits:Darrell Etherington with files from Getty under license
Nvidia CEO Surprised by OpenAI’s $10 Billion AMD Deal
At nearly the same time Nvidia CEO Jensen Huang expressed surprise over OpenAI’s recent multibillion-dollar agreement with rival AMD, OpenAI CEO Sam Altman hinted that there are more such collaborations on the horizon. This revelation came shortly after Nvidia committed to investing up to $100 billion into OpenAI.
Huang made his comments during an appearance on CNBC’s Squawk Box. When questioned about whether he was aware of the AMD deal prior to its announcement, he replied, “Not really.”
A Unique Partnership: OpenAI and AMD
OpenAI’s deal with AMD stands out in the tech industry. AMD has agreed to provide OpenAI with substantial stock options, potentially up to 10% of the company, dependent on various performance metrics, such as stock price fluctuations. In exchange, OpenAI will utilize and contribute to the development of AMD’s next-generation AI GPU chips, effectively making OpenAI a partial shareholder in AMD.
Conversely, Nvidia’s relationship with OpenAI is structured differently—Nvidia has invested in OpenAI, thus becoming a shareholder in the AI model company. Although OpenAI has been leveraging Nvidia hardware through cloud service providers like Microsoft Azure and Oracle OCI for years, Huang noted that this will be the first instance where they sell directly to OpenAI. He emphasized that Nvidia will continue to support the cloud service providers as part of their business strategy.
Preparing for Future Growth
These direct sales, which encompass a range of AI hardware beyond just GPUs, such as networking systems, aim to ready OpenAI for a future where it operates as its own “self-hosted hyperscaler.” This term refers to the organization hosting its own data centers to support its AI models.
However, Huang candidly admitted that OpenAI currently lacks the financial resources to fully fund this gear. He estimated that establishing a single gigawatt of AI data center capacity could cost OpenAI between $50 billion and $60 billion, covering everything from land acquisition to server equipment.
Expanding Data Center Capabilities
As of 2025, OpenAI has committed to building out 10 gigawatts’ worth of data center facilities in the U.S. through what it has dubbed the $500 billion “Stargate” deal in collaboration with Oracle and SoftBank. Additionally, OpenAI secured a $300 billion cloud deal with Oracle.
In partnership with Nvidia, OpenAI plans to develop at least 10 gigawatts of AI data centers, while its agreement with AMD covers 6 gigawatts. OpenAI is also expanding its operations in the U.K. and has commitments in other parts of Europe. It’s estimated that OpenAI has entered into deals worth a staggering $1 trillion this year alone.
Critically, both Nvidia’s and AMD’s arrangements have faced scrutiny. Critics have suggested that Nvidia’s deal could be “circular,” implying that Nvidia is essentially financing OpenAI’s acquisitions while gaining its stock in return.
Altman’s Vision for OpenAI’s Future
While Huang was detailing OpenAI’s infrastructure needs on CNBC, Altman participated in an interview on the a16z Podcast with renowned investor Ben Horowitz. Horowitz praised Altman for the innovative structure of the new deals, highlighting how OpenAI has effectively found ways to secure significant equipment financing from its partners.
When asked about future collaborations, Altman stated, “You should expect much more from us in the coming months.” He sees OpenAI’s forthcoming products and models as having immense potential, which will drive an increased demand for infrastructure. He elaborated on the organization’s decision to take a “very aggressive infrastructure bet.”
Revenue Growth and Future Potential
Despite Altman’s optimistic vision, OpenAI’s current revenue is nowhere close to $1 trillion; however, it is reportedly experiencing rapid growth, achieving around $4.5 billion in the first half of 2025.
Altman firmly believes that this large-scale investment will ultimately yield a return. “I’ve never been more confident in the research roadmap in front of us and the economic value that will stem from utilizing those future models,” he expressed.
However, he acknowledged that reaching this level of economic success cannot be achieved in isolation. “To make a bet of this magnitude, we need substantial support from the entire industry,” Altman explained. He emphasized the necessity for collaborations across various sectors, from the foundational elements of computing to the distribution of models.
More Deals on the Horizon
With OpenAI actively pursuing partnerships within the tech industry, Altman indicated that we can expect to see a flurry of new agreements in the coming months. As the landscape of AI continues to evolve, OpenAI is well-positioned to capitalize on emerging opportunities.
In summary, as both Huang and Altman engage in competitive dialogue regarding the future of AI infrastructure and partnerships, it’s clear that the tech industry should stay alert for further developments from OpenAI. The organization is poised to reshape not only its internal structure but also the broader dynamics of the AI landscape.
Thanks for reading. Please let us know your thoughts and ideas in the comment section down below.
Source link
#Stargate #Oracle #Nvidia #AMD #OpenAI #big #deals #coming #Sam #Altman
About The Author
