OpenAI-AMD deal leaves Nvidia CEO Jensen Huang ‘surprised’, says ‘it’s imaginative, it’s unique and…’ – The Times of India

Nvidia CEO Jensen Huang weighed in on the newly announced chip partnership between AMD and OpenAI, calling the structure “imaginative” and “unique,” while expressing surprise that it could give OpenAI a path to owning as much as 10% of AMD. The multiyear agreement includes OpenAI committing to purchase 6 gigawatts of AMD chips, including the upcoming MI450 series, and receiving warrants for up to 160 million AMD shares. If fully exercised based on deployment milestones and share price, those warrants could translate into roughly a 10% stake.

Huang noted that the arrangement stood out because of its scale and timing. He said he was surprised AMD would “give away 10% of the company before they even built it,” while also calling the approach clever. The deal raises the stakes in the race for AI compute, positioning AMD as a more formidable challenger in a market long dominated by Nvidia.

How AMD’s pact compares with Nvidia’s approach

• Nvidia’s plan: Late last month, Nvidia outlined an intention to invest up to $100 billion in OpenAI over the next decade. In return, OpenAI would build and deploy Nvidia systems requiring about 10 gigawatts of power.
• Different model: Huang emphasized that Nvidia’s strategy is “very different.” Rather than offering equity-like upside, Nvidia’s approach centers on selling systems directly to OpenAI, reinforcing a crucial supply relationship.
• Funding outlook: Asked how OpenAI would pay for such large-scale purchases, Huang said the funds aren’t in hand yet. He suggested OpenAI would likely draw on fast-growing revenues, along with potential equity or debt financing. He added that Nvidia expects to have the opportunity to invest alongside other backers when that capital raise occurs.

Despite intensifying competition, Huang added that he’s pleased with Nvidia’s ongoing relationship with OpenAI, quipping that his “only regret is that we didn’t invest more” in the company earlier.

For AMD, securing a long-term, high-volume commitment from one of the world’s most demanding AI customers underscores confidence in its next-generation accelerators. For OpenAI, the deal diversifies supply and potentially secures a meaningful ownership position if performance milestones and market conditions align.

As AI workloads grow and access to compute becomes a defining advantage, the contrasting models highlight two paths to scale: AMD’s equity-linked supply alignment and Nvidia’s direct system deployment backed by a massive long-term investment plan. Either way, the race for AI infrastructure is accelerating—and the competitive lines between chipmakers and AI platforms are being redrawn in real time.