OpenAI said October 6 that it would begin using AMD chips in the second half of 2026, to facilitate its new computer data centers, reports The New York Times. In September, OpenAI announced a $100 billion agreement to use computer chips from AMD rival, Nvidia.

The Times says the facilities that use AMD Instinct graphics processing units would be separate from the data centers that OpenAI has committed to building in Texas, New Mexico, Ohio and an unnamed site in the Midwest.

OpenAI says it plans to deploy enough AMD chips to consume six gigawatts of power over several years. The agreement with Nvidia is for enough chips to consume 10 gigawatts. One gigawatt is enough to power about one million homes for an hour, or half the power generated by the Hoover Dam annually.

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Although AMD is not investing in OpenAI, the agreement allows OpenAI to buy up to 160 million shares in the chipmaker at a penny per share, which would give OpenAI a 10% stake in the company. It could also supply OpenAI with additional capital as it works to build computing facilities over the next several years.

CNBC reports that Nvidia's investments in OpenAI will come in phases, starting with $10 billion when the agreement is made final and the first gigawatt of computing power comes online, while subsequent investments will come in as additional gigawatts are spun up.

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According to the Times, the only limitation on Nvidia’s growth so far has been its ability to produce enough chips to meet demand. But several other companies, including AMD, tech giants like Google and Amazon and start-ups like Cerebras and Groq, are racing to challenge its dominance.