The price of pursuing artificial genius is astronomical, and OpenAI’s high-stakes spending spree is continuing with a new multibillion-dollar deal with chipmaker AMD. The agreement highlights the incredible capital investment required to stay at the forefront of the AI revolution.
Valued at around $500 billion, OpenAI has been burning cash at an astonishing rate, going through $2.5 billion in the first half of 2025. This new, massive—though undisclosed—financial commitment to AMD for hundreds of thousands of AI chips will only add to that expenditure, demonstrating a strategy of growth at any cost.
The investment is deemed essential by CEO Sam Altman, who sees access to computing power as the ultimate bottleneck. The AMD deal will provide six gigawatts of capacity, a necessary resource for developing next-generation AI. This spending is directed at building the foundational infrastructure for future breakthroughs.
The partnership also offers a potential long-term financial return for OpenAI. A warrant included in the deal gives the AI firm the option to buy a 10% stake in AMD at a very low price. If AMD’s stock continues to perform well—it surged $80 billion on the news—this equity could become an extremely valuable asset for OpenAI.
While questions about long-term financial sustainability remain, OpenAI’s strategy is clear: secure the best talent and the most powerful tools now to win the AI race. This high-risk, high-reward approach is reshaping the tech industry, where access to capital and computing power has become the ultimate competitive advantage.
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