By James Hires
Publication Date: 2026-03-15 05:05:00
Nvidia (NVDA 1.56%) leads the pack in terms of data center computing hardware. Per IOT Analytics’ estimates, Nvidia controls a 92% share of the market. That makes all the major artificial intelligence (AI) models dependent upon Nvidia graphics processing units (GPUs) to a high degree.
OpenAI, Anthropic, and more all need the company’s products, and Nvidia has profited handsomely from it. Today, it’s the world’s most valuable company by market cap.
But, as the saying goes, don’t put all your eggs in one basket. Nvidia has competitors like Alphabet with its Tensor Processing Unit (TPU) or the subject of this article, Advanced Micro Devices (AMD 2.33%), better known by its initials and symbol, AMD.
Image source: Getty Images.
Not looking to be an also-ran
At present, AMD has a 4% share of the data center GPU market. That’s not much, but it’s double the next-largest company, which is Huawei, at 2%.
It’s second only to Nvidia in the market, which means it’s in arguably the best position to chip away at Nvidia’s lead. And that seems to be exactly what AMD is trying to do.
Late last year, AMD signed an agreement with OpenAI that will see it supply the AI start-up with hundreds of thousands of chips and allow OpenAI to buy up to a 10% stake in AMD. AMD expects the agreement to generate more than $100 billion in revenue from OpenAI alone.
But the deals didn’t stop there. In February of this year, AMD signed another agreement with Meta Platforms to provide it with 6 gigawatts of…
