How the Massive OpenAI and AMD Deal Challenges Nvidia’s Dominance

WSJ What’s News

The Wall Street Journal

News, Daily News

4 • 4K Ratings

🗓️ 6 October 2025

⏱️ 12 minutes

🔗️ Recording | iTunes | RSS

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Summary

P.M. Edition for Oct. 6. OpenAI and Advanced Micro Devices announced a multibillion-dollar partnership to collaborate on AI data centers, sending AMD’s stock soaring. WSJ Heard on the Street columnist Dan Gallagher joins to discuss what the deal means for AMD, and how it will challenge market leader Nvidia. Plus, Paramount has acquired popular news and opinion site the Free Press, and is installing its founder Bari Weiss as the editor in chief of CBS News. We hear from Joe Flint, who covers media and entertainment for the Journal, about what Weiss is expected to bring to the role, and why the move is a strategic one for Paramount CEO David Ellison. And Fifth Third bank is acquiring Comerica for $10.9 billion, a move that would create one of the top 20 largest banks in the U.S. WSJ reporter Gina Heeb talks about whether this is the start of a wave of consolidation in the industry. Alex Ossola hosts. Sign up for the WSJ's free What's News newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	OpenAI and AMD announce a partnership that could challenge NVIDIA's dominance.
0:09.1	Plus, Paramount CEO David Ellison installs the free press as editor-in-chief of CBS News.
0:16.2	There are certainly plenty of folks who think a lot of the moves Ellison has been making since he took
0:22.5	over Paramount, the parent of CBS, only two months ago, by the way, are aimed at appeasing
0:30.5	or keeping the White House off his back.
0:33.9	And the Trump administration's confrontation with Democratic-led states over the deployment
0:38.8	of the National Guard escalates nationwide. It's Monday, October 6th. I'm Alex O'Sullough for the
0:45.6	Wall Street Journal. This is the PM edition of What's News, the top headlines and business
0:50.7	stories that move the world today.
1:00.5	OpenAI and chip designer advanced micro devices have announced a multi-billion dollar partnership to collaborate on AI data centers that will run on AMD processors.
1:05.0	It's one of the most direct challenges yet to industry leader and Vidia.
1:09.0	Joining me now is WSJ Hurd on the street columnist, Dan Gallagher.
1:13.0	Dan, what does this deal entail?
1:15.3	Essentially, OpenAI is promised to buy a lot of AMD's artificial intelligence chips
1:21.3	in order to staff up about six gigawatts worth of computing capacity over the next several years.
1:27.3	That's a lot of computing. I saw
1:29.1	somebody refer to this. You think of a gigawatt as essentially the output of an entire nuclear
1:33.7	power plant. So you're talking lots and lots of chips. And of course, this is all depending on
1:40.0	certain milestones, can open eye get the money to do this, deploy this. So, you know, it's never like a sure thing.
1:45.9	But it's a major vote of confidence for AMD.
1:49.4	Why is this deal so important for AMD?
1:52.9	Well, AMD has been competing against NVIDIA in right in the sweet spot, which is called GPUs.
	...

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