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OpenAI has set in motion a $300 billion hardware expansion that binds its chip suppliers, financiers, and energy providers into a single feedback loop. The company has locked in multi-year agreements with AMD and Broadcom to deliver tens of millions of AI accelerators between 2026 and 2029, deals that together represent roughly 16 gigawatts of new compute power, enough to rival the entire electricity use of some small nations. AMD will supply 6 gigawatts of Instinct GPUs and has granted OpenAI equity warrants tied to performance milestones, while Broadcom will co-design and deploy 10 gigawatts of custom silicon and rack systems over the same period. Those contracts sit atop the Stargate build-out with Oracle and SoftBank, a five-site U.S. expansion referencing more than $300 billion in cumulative spend, the backbone of what may be the largest privately financed infrastructure project in tech history. Circular AI economy The structure of these agreements points to a circular economy pattern in AI infrastructure where capital, equity incentives and purchase obligations interlock across vendors, infrastructure providers and model operators. The AMD arrangement links future GPU deliveries to milestone-based warrants that give OpenAI upside exposure to AMD’s equity performance, creating a feedback loop between a supplier’s valuation and a customer’s capacity expansion path. In parallel, Nvidia disclosed about a 7 percent stake in CoreWeave earlier this year while CoreWeave expanded its agreements with OpenAI by $6.5 billion, bringing total 2025 contract value to roughly $22.4 billion, which ties a chip vendor’s equity, an infrastructure lessor’s revenue and OpenAI’s compute consumption in the same chain. Bloomberg also reported on vendor-financing loops involving Nvidia commitments up to $100 billion connected to chip purchases by OpenAI, framing the optics of demand that is partly financed by the supplier itself. A forward-looking view turns on three execution gates: utilization,…

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Filed under: News - @ October 20, 2025 8:28 pm