Semiconductor maker AMD will supply its chips to artificial intelligence company OpenAI as part of an agreement to team up on building artificial intelligence infrastructure, the companies said Monday.

OpenAI will also get the option to buy as much as a 10% stake in AMD, according to a joint statement announcing the deal. It’s the latest deal for the ChatGPT maker as it races to beef up its AI computing resources.

Under the terms of the deal, OpenAI will buy the latest version of the company’s high performance graphics chips, the Instinct MI450, which is expected to debut next year.

The agreement calls for supplying 6 gigawatts of computing power for OpenAI’s “next generation” AI infrastructure, with the first batch of chips worth 1 gigawatt to be deployed in the second half of 2026.

AMD also issued OpenAI with a warrant allowing the AI company to buy up to 160 million shares of AMD’s common stock. That amounts to about 10% of company based on AMD’s 1.6 billion outstanding shares. The warrant will vest based on two milestones tied to the amount of computing power deployed, as well as unspecified “share-price targets.”

Shares of AMD spiked 25% before the opening bell Monday. Shares of Nvidia, which have repeatedly set new record-highs this year, fell slightly.

“This partnership is a major step in building the compute capacity needed to realize AI’s full potential,” OpenAI CEO Sam Altman, said in a news release. “AMD’s leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster.”

The deal is a boost for Santa Clara, Calif.-based AMD, which has been left behind by rival Nvidia. But it also hints at OpenAI’s desire to diversify its supply chain away from Nvidia’s dominance. The AI boom has fuelled demand for Nvidia’s graphics processing chips, sending its shares soaring and making it the world’s most valuable company.

Last month, OpenAI and Nvidia announced a $100 billion partnership that will add at least 10 gigawatts of data center computing power.

© 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

Last week, “Secretary of War” Pete Hegseth called America’s troops fat. Every “warrior,” he said, will now be required to train every duty day and pass fitness tests twice a year. “Frankly, it’s tiring to look out at combat formations … and see fat troops. Likewise it’s completely unacceptable to see fat generals and admirals in the halls of the Pentagon.”

Equating physical appearance with battle-ready fortitude has become a consistent talking point for Hegseth and other Republicans in his orbit. In August, Hegseth and US health secretary Robert F. Kennedy Jr. launched the “Pete and Bobby Challenge” across their social media feeds, completing a workout of 100 pushups and 50 pull-ups, with the goal of finishing in under five minutes. (Within hours of its publication, left-wing accounts began making fun of Kennedy’s pull-up form and questioning his decision to wear denim while exercising.)

After the young male vote flipped toward Trump by almost 30 points in the last election, the fight for their attention has taken center stage in the US political culture war. Both parties are vying for the male half of the most fitness-obsessed generation in recent memory.

Though there is nothing inherently right-wing about lifting weights, fitness influencers have been at the forefront of the rightward shift of young men in recent years; exercise content represents a key bloc of the so-called manosphere. However, a small but rapidly growing subset of progressive gym bros are moving into the online fitness space, and influential figures on the left are taking notice.

Colin Davis, a 24-year-old from North Carolina, is one of those men. In a series of videos shared to TikTok and Instagram, Davis flexes under dim lighting that accentuates his massive biceps and showcases dumbbell bench presses to heavy metal music. He also posts about his leftist beliefs.

“You don’t need a side hustle, you need a union,” Davis captions one video that has almost 60,000 likes. In a TikTok post that has been liked over 187,000 times, he discusses the legacy of Martin Luther King Jr. and the value of political protest, while leaning on a squat rack

Davis first went viral in April when he published a video of himself seated in a lawn chair in the middle of the woods, ridiculing the “warrior” culture that has grown to dominate much of the male-oriented fitness space. “You are not a warrior, you are not a protector, you are not defending your homeland. You are a guy that lifts weights a couple times a week and maybe goes for a run,” he says, staring into the camera deadpan.

Though the aesthetic similarities can be undeniable, Davis’ content is a stark departure from the deluge of “trad” fitness that inundates many young men’s Instagram and TikTok feeds. Those often include compilation videos of men flexing their muscles, cut between clips that ridicule partying women, body-positivity influencers, and gay men. “Embrace Masculinity,” one such video emblazons across the center of the screen.

The artificial intelligence (AI) revolution has whetted the appetites of Nvidia’s competitors, who are seeking to close the gap on the chip giant, which has so far been the central playmaker in the AI revolution.

Virtually unknown to the general public just three years ago, Nvidia now boasts the world’s highest revenues, driven by sales of its graphics cards—or GPUs (graphics processing units)—the processors that are key to building the technology behind ChatGPT and its rivals.

Why does Nvidia dominate?

While it was not the first to develop GPUs, the California-based group made them its specialty starting in the late 1990s, at the very beginning of cloud computing, and thus has unique experience in the field.

Moreover, Nvidia is “a three-headed dragon,” as Dylan Patel, head of consultancy SemiAnalysis, recently put it on the “No Priors” podcast.

It does not just design chips, but offers an entire infrastructure capable of making them work together with networking and software—the dragon’s two other heads.

Nvidia can “satisfy every level of need in the datacenter with world-class product,” according to Jon Peddie of Jon Peddie Research.

Where is the competition?

At a considerable distance from Nvidia, whose market share is estimated at roughly 80% depending on the source, American firm AMD had until now been considered the runner-up.

But AMD generates the bulk of its revenue from CPU sales—processors used for personal and business computers that are less powerful than GPUs—and “can’t divert resources from that golden egg,” Peddie believes.

Determined to reduce their dependence on Nvidia, the major cloud providers have developed their own processors.

Google began using its Tensor Processing Unit (TPU) a decade ago, while Amazon Web Services (AWS)’s Trainium, the cloud-dedicated subsidiary, appeared in 2020.

Today, Google and Amazon account for more than 10% of the market and have even overtaken AMD in terms of “performance, pricing, usability, reliability, and ability to produce enough chips to satisfy the biggest customers,” argued Jordan Nanos of SemiAnalysis.

Google is even offering its chips to third-party customers, according to several media reports. Contacted by AFP, it did not respond. Amazon, however, does not sell its Trainium to other players.

Where do the Chinese stand?

The only nation rivaling the United States in the sector, China is seeking to make up for lost time—and is having to do so without the most advanced US chips, which are now subject to export restrictions.

For Nanos, Huawei ranks among Nvidia’s most credible competitors, alongside Google or Amazon, and ahead of AMD.

Like Google and Amazon, their Chinese equivalents Baidu and Alibaba are also now having their own AI processors manufactured, though these remain merely substitutes for Nvidia’s GPUs.

“They can’t catch up technically for a while using in-country” fabrication facilities, said Peddie.

But “over time, with its huge and smart workforce, and subsidized investment, China will be able to make state-of-the-art fabrication systems.”

Is Nvidia under threat?

No expert sees the Santa Clara, California, giant loosening its grip on the sector in the near future.

“Nvidia underpins the vast majority of AI applications today,” notes John Belton, analyst at Gabelli Funds. “And despite their lead, they keep their foot on the gas by launching a product every year, a pace that will be difficult for competitors to match.”

In early September, Nvidia announced that its new generation, Rubin, would be commercialized in late 2026, with performance for AI functions estimated at 7.5 times that of its flagship product currently on the market, Blackwell.

© 2025 AFP