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On October 6, 2025 AMD and OpenAI shook up the tech world with a multi-year, multi-generation compute agreement that will see OpenAI deploy up to six gigawatts of AMD Instinct GPUs, beginning with a one-gigawatt rollout in the second half of 2026. This is not a small vendor contract — it’s a strategic partnership that ties the future of massive AI infrastructure to American-made silicon and engineering.
Buried inside the rosy press releases are hard financial facts that demand scrutiny: AMD issued OpenAI a warrant for up to 160 million shares that vests as deployment milestones and stock-price hurdles are met, effectively giving OpenAI an option to pick up nearly a double-digit stake under certain conditions. Those terms — spelled out in AMD’s SEC filing and reported widely — create enormous upside for OpenAI if deployments scale, and they raise real questions about private deals that can shift corporate control without the usual market discipline.
Investors reacted like you would expect when a U.S. chipmaker lands a blockbuster customer: AMD shares jumped sharply, rising roughly 24 percent in early trading as markets priced in what AMD called “tens of billions” in potential revenue from large-scale AI customers. This is a win for American industry and American shareholders, but it’s also a reminder that the AI gold rush is concentrating power and capital fast, and those gains should benefit the many, not just a well-connected few.
Make no mistake: this agreement is a direct challenge to Nvidia’s long-standing dominance in AI accelerators and it shows OpenAI’s drive to diversify suppliers and harden its supply chain. Conservatives should cheer healthy rivalry and the emergence of an American alternative to a single-vendor choke point, while also demanding that this competition bolster national resilience, meaning more fabs, more skilled jobs, and fewer foreign dependencies.
At the same time, patriotic Americans have every right to ask tough questions about the governance implications of giving a private AI firm cheap or deeply discounted options to secure a large equity slice of a major U.S. technology company. When private deals create near-automatic stock transfers tied to technical milestones and market prices, Congress and regulators should make sure those arrangements don’t become loopholes for influence, insider enrichment, or compromises to our national security posture.
This deal should be a clarion call for conservative policymakers and voters: back American chipmakers, support real competition, and demand transparency. Celebrate AMD’s engineers and factory workers who make this possible, but insist that taxpayers, workers, and national security interests are protected as Silicon Valley writes the rules of the next industrial revolution.
