OpenAI’s AMD pact and Sora backlash, explained

TL;DR:

OpenAI announced a strategic AMD partnership on October 6.
Reports highlight warrants tied to up to 160 million AMD shares.
Nvidia’s CEO called the pact “imaginative” and “unique.”
Sora sparked copyright and misuse backlash after launch.
OpenAI is adding controls while racing to secure more compute.

OpenAI announced a strategic partnership with AMD on October 6, 2025, centered on deploying 6 gigawatts of AMD accelerators to power current and future AI systems. The company positioned the pact as part of a broader effort to secure long-term compute.

Follow-on reports described unusual financial mechanics. Coverage notes OpenAI will commit to buying AMD chips over several years and could receive warrants for up to 160 million AMD shares, creating potential ownership if exercised. Nvidia CEO Jensen Huang called the arrangement “imaginative” and “unique.”Analysts have questioned whether recent multibillion-dollar commitments across the AI stack show overheated exuberance.

Sora’s rocky moment

OpenAI’s video model Sora faced a wave of criticism after launch, including concerns over generating copyrighted characters and harmful content. Reporting says the company initially used an opt-out approach, then shifted to explicit permission for rightsholders after backlash. OpenAI also previewed Sora 2’s API and promised more safeguards.

OpenAI’s global affairs update this month focused on disrupting malicious uses and signaled more work on safety and rules. The post aligns with stronger controls that the company says protect people from real harms.

Why the AMD deal matters

Compute supply: Six gigawatts of accelerators could support rapid scaling of frontier models and video.
Market structure: Warrants tied to chip purchases blur lines between customer and investor, drawing scrutiny.
Competitive posture: Nvidia’s response suggests AMD gained a symbolic win, even as Nvidia still leads in deployments.

What to watch next

Regulatory attention to complex supply-equity deals in AI chips.
Sora policy clarity, including watermark resilience and consent tooling.
More compute alliances, including the Stargate initiative with Korean chip partners.

Short checklist

Issue	Open question
Sora copyright	How will rightsholders opt in at scale?
Safety	What are the default content filters?
Compute	How fast does AMD capacity arrive in 2026?
Governance	Will warrants model spread to other chip deals?

Why it matters

OpenAI is racing to secure compute while tightening policy on a sensitive video tool. The combination affects developers, investors, and creatives who rely on clear rules and reliable performance.

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