AMD-OpenAI multi-billion-dollar deal challenges Nvidia’s dominance

Advanced Micro Devices (AMD) on Monday announced a landmark multi-billion-dollar agreement with OpenAI and turned up the heat on Nvidia, which currently dominates the chips space. The partnership sent AMD shares rallying over 25% in early trading.

Deal contours

According to a joint statement, AMD will provide OpenAI with the latest version of its high performance graphics chips expected to debut next year.

It calls for supplying 6 gigawatts of computing power for OpenAI’s next generation AI infrastructure, with the first gigawatt coming online in the…