steven fiorillo
OpenAI Throws Down The Gauntlet Against Everyone (Raw Thoughts)
10/13/2025, 11:16:01 PM
Economic Summary
- OpenAI executed large multi-vendor compute agreements—10 GW with NVIDIA, 6 GW with AMD, and 10 GW with Broadcom—totaling roughly 26 GW, signaling robust, long‑term demand for AI compute and data center capacity.
- NVIDIA will provide next‑generation Vera Rubin systems starting H2 2026 and is described as intending to invest up to $100 billion as systems deploy, reflecting deep financial and technological alignment with OpenAI.
- AMD's 6 GW agreement includes a warrant for up to 160 million AMD shares, indicating strategic financial alignment and supply diversification that reduces sole reliance on NVIDIA.
- Broadcom collaboration centers on custom AI accelerators plus Ethernet/networking scale, enabling OpenAI to embed model learnings into bespoke hardware and improve performance and energy efficiency.
- The aggregate deals imply significant secondary demand for energy, networking, and heavy equipment, creating upside for infrastructure and industrial names such as Caterpillar and energy suppliers.
Bullish
- OpenAI's combined 26 GW commitments (10 GW NVDA, 6 GW AMD, 10 GW Broadcom) validate sustained, large-scale AI compute demand.
- NVIDIA (NVDA) gains strategic alignment and advanced tech access via a multi‑gigawatt commitment and Vera Rubin deployment in H2 2026.
- AMD (AMD) secures supply diversification with a 6 GW deal plus a warrant for up to 160 million shares, aligning interests.
- Broadcom (AVGO) will deploy 10 GW of custom AI accelerators and leverage networking integration, enabling hardware-software optimization.
- The scale of these deals implies rising energy and infrastructure needs, benefiting equipment and construction providers like Caterpillar (CAT).
Bearish
No bearish cases captured.
Bullish tickers
NVDAAMDAVGOCAT
NVDA
Bullish
OpenAI committed to deploy at least 10 GW of NVIDIA systems; NVIDIA will supply next‑gen Vera Rubin platforms beginning H2 2026 and is aligned financially with OpenAI.
AMD
Bullish
AMD signed a 6 GW agreement to power OpenAI infrastructure across multiple GPU generations and received a warrant for up to 160 million AMD shares.
AVGO
Bullish
Broadcom will develop and deploy 10 GW of custom AI accelerators designed with OpenAI, leveraging its Ethernet and networking solutions for scaled AI data centers.
OPENAI
Bullish
OpenAI is vertically integrating compute—securing supply from NVIDIA and AMD while designing custom Broadcom accelerators—to control hardware/software stack and scale toward AGI.
MSFT
AMZN
GOOGL
META
CAT
Bullish
Infrastructure and equipment demand from large-scale AI data centers could benefit Caterpillar due to increased construction and power needs.
People mentioned
Mark Zuckerberg