Nvidia has sharply reduced s long-term high-performance chip allocation to OpenAI, dropping from more than 1,000 wafers—valued at roughly $100 billion—to 300 wafers worth about $30 billion. This 70% cut in partial supply marks a major reorganization of their partnership.
Strategic Shift Amid Tight Supplies
Industry observers note the adjustment provides OpenAI wh relatively abundant supply compared to regional standards. A modest reduction in prior commments signals a step back from aggressive expansion, potentially alleviating concerns over market overheating.
Recent financial analyses highlight Nvidia and OpenAI leading this week’s chip supply deals, posioning the revised quota as a competive bargain whin broader sales volumes exceeding 1,000 wafers.
Broader Industry Participation
Major players including Amazon, SoftBank, and Microsoft actively engage in similar arrangements, expanding access across sectors. The current quota builds on a second-generation chip partnership announced last September, inially set at 1,000 wafers.
Deeper Strategic Changes
Experts assess the move as more than a volume tweak— reflects a profound directional pivot. Nvidia previously allocated around 100 wafers yearly to 10 key clients, fostering deep market penetration. OpenAI leveraged these to scale hardware capabilies, though tight structures fueled sector-wide shortages.
Newer approaches emphasize intensive allocations to select partners. OpenAI seeks to counter Nvidia’s hardware dominance by blending diverse chip sources.
Diversification Gains Momentum
OpenAI has secured hardware contracts wh AMD outside Nvidia and unveiled Broadcom collaborations threatening Nvidia’s lead. Microsoft similarly restructured s comprehensive AWS partnership.
Capacy and Market Outlook
OpenAI’s baseline operations average 7,300 wafers (about $106 billion), wh rebound potential up to 8,500 wafers (roughly $123 billion). These dynamics suggest stabilizing forces in the AI chip landscape.
