OpenAI has announced a multibillion-dollar partnership with Advanced Micro Devices (AMD) to develop AI data centers powered by AMD processors, marking a significant challenge to Nvidia's dominance in the market. The five-year deal includes a commitment from OpenAI to purchase 6 gigawatts of AMD chips, starting with the MI450 model, as demand for AI computing power continues to surge.

Broadcom's recent agreement to develop chips and computing systems with OpenAI has initially boosted its stock, but the long-term viability of the partnership raises concerns. OpenAI's ambitious plans and projected revenue fall short of covering the enormous costs of its projects, leading to questions about how the company will finance its expansion.