With its latest multibillion-dollar deal with AMD, OpenAI has solidified its new role as the ultimate power broker in the semiconductor industry. Its decisions on which chips to buy are now so consequential that they can instantly create or destroy tens of billions of dollars in market value and dictate the strategic direction of major corporations.
This new status was on full display as AMD’s valuation surged by $80 billion on the news of the partnership. This demonstrates that an endorsement from OpenAI is currently the most valuable prize in the tech world. The company’s purchasing power now translates directly into market-making power.
By strategically splitting its needs between Nvidia and now AMD, OpenAI is actively shaping the market to its advantage. It is fostering a competitive duopoly where it can leverage the rivalry between the two giants to ensure better prices, dedicated support, and access to the best technology. It is no longer a passive buyer but an active market shaper.
The 10% equity option in the AMD deal is a classic power broker move. It gives OpenAI a direct stake in the success of one of its key suppliers, granting it influence that goes far beyond that of a typical customer. It can now help guide the development of the very chips it will one day purchase.
As the AI industry’s demand for computing power continues to explode, OpenAI’s role as the chief arbiter of which technologies succeed will only grow. The company is no longer just building AI; it is building the very industry that supplies its foundational components.