OpenAI has recently signed massive computing power orders with several tech giants, clearly indicating that the global AI race has entered a new phase centered around infrastructure and computing power.

According to public information, since the beginning of this year, OpenAI has signed transactions worth up to approximately $1 trillion. The counterparties include major tech companies such as NVIDIA Corporation(NVDA.US) , Broadcom Limited(AVGO.US) , and Microsoft Corporation(MSFT.US) , as well as companies closely related to Nvidia like CoreWeave(CRWV.US) . The interests of these companies are also tied to OpenAI's future profitability.

What do these massive orders signify and what impact will they have on the AI computing power industry? The Sahm team has compiled detailed information on the orders signed by the relevant companies for readers' reference.

Known Companies and Entities with Compute Supply Agreements with OpenAI

• Broadcom Limited(AVGO.US) : Signed a multi-year agreement with OpenAI to deploy 10 gigawatts of AI data center capacity. This means that OpenAI will invest an additional $350 billion to $500 billion on top of its existing commitments, in order to secure the computing power needed to run services like ChatGPT.
• Oracle Corporation(ORCL.US) : Signed a $300 billion deal with OpenAI to add 4.5 gigawatts of computing power for the "Stargate" project.
• Microsoft Corporation(MSFT.US) : Signed a revised cooperation agreement with OpenAI, which committed to purchasing an additional $250 billion of Azure cloud services in exchange for Microsoft's agreement to forgo cloud service priority and support OpenAI's capital restructuring. After the restructuring, Microsoft will hold a 27% stake.
• NVIDIA Corporation(NVDA.US) : OpenAI will use Nvidia's systems to build and deploy at least 10 gigawatts (GW) of AI data centers, utilizing millions of Nvidia's GPUs to train and deploy OpenAI's next - generation AI models. To support this landmark strategic partnership, Nvidia plans to invest up to $100 billion in OpenAI.
• Advanced Micro Devices, Inc.(AMD.US) : OpenAI announced plans to purchase and deploy up to 6 gigawatts of AMD Instinct - series GPUs, with potential sales reaching $90 billion. In exchange, AMD issued warrants to OpenAI for the purchase of up to 160 million shares of AMD stock at an exercise price of $0.01 per share.
• Amazon.com, Inc.(AMZN.US) : AWS announced a $38 billion computing power contract with OpenAI, marking the first - ever collaboration between the global cloud computing leader and the AI leader.
• CoreWeave(CRWV.US) : An emerging cloud computing company backed by Nvidia, OpenAI has placed multiple additional orders this year, with the latest contract amount reaching $22.4 billion.
• Alphabet Inc. Class C(GOOG.US) : In July, OpenAI added Google Cloud as a ChatGPT cloud service provider, with the contract details undisclosed.

In January of this year, OpenAI CEO Sam Altman announced at the White House that the "Stargate" data center project would have a scale of 10 GW. However, during a live broadcast last week, the overall target has tripled. Currently, OpenAI has reached agreements with partners in the UAE and Norway to build 1 GW and 230 MW data centers respectively.

In a podcast last Friday, when Altman was mentioned by the host that the company's current annual revenue is reportedly $13 billion, he emphasized, "Our revenue is far beyond that figure." He also hinted in the program that the company might achieve an annual revenue of $100 billion by 2027.

Market Impact and Future Outlook

These partnerships have far - reaching implications for the global tech industry.

Driving the Global AI Infrastructure Boom: The agreements OpenAI has reached with multiple companies, including data center deployment deals with Nvidia, AMD, and Broadcom, reflect the sustained high - growth environment in the AI sector. This is expected to lead major global tech firms to continually increase their capital expenditures. For example, OpenAI's collaboration with Broadcom to develop custom AI chips, its supply agreement with AMD for AI chips, and its receipt of investment and chip supply from Nvidia all confirm the trend noted by analysts that "the sustained high - growth environment in the AI sector is likely to lead major domestic and international firms to continually increase their capital expenditures."

Increasing Industry Capital Investment: The multi - billion - dollar orders highlight the staggering capital - intensive nature of AI research and development. Some analysts have pointed out that this is "further concentrating computing power among hyperscale cloud providers," as they are the ones capable of bearing the huge capital expenditures.

Signaling a Multi - Cloud Future: OpenAI's cooperation with multiple cloud providers suggests that future AI innovation will likely rely on a hybrid multi - cloud architecture. Industry experts have predicted that "compute constraints will continue to drive new ecosystem partnerships" and "a multi - cloud world will emerge, bringing cloud companies and AI model providers closer together."

Disclaimer: The information, data, and views provided above are sourced from publicly available information and are intended to facilitate readers' access to information. They do not constitute investment advice.