The new deal between OpenAI and AMD is so massive that its scale is best measured in unprecedented units of energy: the computing power it will create is equivalent to three times the annual electricity production of the Hoover Dam. This stark comparison highlights the industrial-level resources now being poured into artificial intelligence.
This six-gigawatt commitment will be realized through a multi-year deployment of hundreds of thousands of AMD’s specialized AI chips. This hardware will power the vast data centers where OpenAI will train its next-generation models, pushing the boundaries of machine learning.
The deal addresses the single biggest factor holding back AI progress—a shortage of raw computational power. CEO Sam Altman has made securing this power a top priority, and this partnership is a giant step toward achieving that goal.
This colossal energy demand comes with a colossal price tag, but the market sees it as a wise investment. AMD’s valuation jumped by $80 billion upon the announcement, a sign that investors understand that in the AI race, power is paramount.
The partnership also includes an option for OpenAI to acquire a 10% stake in AMD, creating a powerful alliance to manage this new energy-intensive era of computing. Together, they are building an infrastructure that will consume power on the scale of a small nation, all in the pursuit of artificial intelligence.
The Hoover Dam x3: OpenAI-AMD Deal Measured in Unprecedented Energy Scale
