- AMD’s big agreement this week with OpenAI gives the chipmaker a chance to cut into Nvidia’s dominance in the AI market.
- “Right now, Nvidia almost has a monopoly,” said Mandeep Singh, senior analyst at Bloomberg intelligence.
- In the 1990s, Intel needed AMD to be a viable No. 2 in order to support its case against antitrust regulators.
In the 1990s, when Intel dominated the PC chip market, the semiconductor maker needed Advanced Micro Devices to exist as a viable No. 2 to help avoid being charged with monopolistic behavior.
Almost three decades later, AMD may be serving a similar role for Nvidia, which controls over 90% of the market for graphics processing units used for artificial intelligence workloads.
When AMD announced a deal on Monday that involves selling many billions of dollars worth of GPUs to OpenAI, it announced itself as a serious rival the can pick up share in the quickly growing market for AI chips, analysts said.
Source: https://www.cnbc.com/2025/10/08/amd-deal-with-openai-gives-nvidia-a-needed-challenger-in-ai-chips.html