Americans should be paying attention: on October 6, 2025 AMD and OpenAI announced a strategic, multi-year agreement that will see OpenAI deploy up to 6 gigawatts of AMD Instinct GPUs, with an initial 1 gigawatt deployment of the upcoming MI450 series beginning in the second half of 2026. This is a massive scaling of compute capacity and a clear sign that U.S. chipmakers are still central to the global AI race.
The deal goes beyond hardware — AMD has issued OpenAI a warrant for up to 160 million shares that vests as technical and commercial milestones are met, effectively giving OpenAI the option to convert into roughly a 10 percent stake under certain conditions. That kind of financial sweetener raises legitimate questions about influence and alignment when a single private AI lab can secure such favorable economic terms from a major American semiconductor supplier.
Wall Street reacted the way free markets should: AMD’s stock jumped roughly a quarter of its value as investors priced in a potential tidal wave of AI revenue tied to the agreement. The market roar was loud and immediate, with shares surging in the wake of the announcement as traders recognized AMD’s newfound leverage in a sector long dominated by one rival.
This is a win for American manufacturing and competition — breaking up chokeholds in critical industries is something conservatives should cheer — but it’s also a moment for caution. The scale of compute being deployed is staggering: reporting suggests six gigawatts of capacity and a project the size of a one-gigawatt facility, figures that carry huge energy and geopolitical implications as AI infrastructure rivals the power needs of small cities. At the same time, projections that this partnership could deliver tens or even over a hundred billion dollars in revenue over several years show how much is at stake.
Hardworking Americans deserve both the prosperity and the protection that come with technological leadership. Congress and regulators should take a sober look at deals that hand enormous leverage to unelected private actors, while policymakers must double down on policies that keep chip design and manufacturing strong on U.S. soil. Celebrate the victory for American industry, but don’t confuse unchecked tech power for accountability — we need free enterprise, national security, and common-sense oversight all working together for the country.
