Summary3 min read

WSJ Tech News Briefing – TNB Tech Minute: OpenAI and AMD Strike Major Computing Deal

Date: October 6, 2025
Host: Zoe Kuhlkin, The Wall Street Journal

Episode Overview

This Tech Minute episode focuses on the major new partnership between OpenAI and Advanced Micro Devices (AMD), emphasizing the implications for the artificial intelligence (AI) chip market and the broader tech industry. The episode also touches briefly on AI startup funding disparities between the US and Europe, and announces a new CEO appointment at Verizon.

Key Discussion Points & Insights

1. OpenAI and AMD's Multi-Billion Dollar AI Data Center Deal

Deal Announcement:
OpenAI and AMD have agreed to a multi-billion-dollar partnership to collaborate on AI data centers powered by AMD chips (00:15).
Deal Details:
- OpenAI committed to purchase 6 gigawatts of AMD chips, beginning with the Mi 450 chip, starting next year (00:26).
- The purchase can be made either directly or through OpenAI’s cloud computing partners (00:32).
- While the total price was not specified, AMD estimates costs will reach “tens of billions of dollars per gigawatt of capacity.” (00:38)
Competitive Implications:
The deal is considered “one of the most direct challenges yet to industry leader Nvidia” as AMD aims to strengthen its presence in the AI accelerator market (00:44).

“The partnership marks one of the most direct challenges yet to industry leader Nvidia.”
— Zoe Kuhlkin, 00:44

2. European AI Startups Face Funding and Talent Gaps

Shift of European Founders to US:
Many European tech founders seeking AI funding are relocating to the United States. The key reasons are the high upfront costs for AI computing infrastructure and the need for specialist talent (00:51).
AI Funding Disparity:
- American AI and machine learning startups raised more than $160 billion in the first nine months of the year, compared to $20 billion in Europe (00:58).
- Source: PitchBook
Economic Impact:
Europe’s inability to produce big tech firms is viewed as a cause of its “stagnant economies” (01:08).

“The region’s inability to create big tech firms is seen as one of the reasons for its stagnant economies.”
— Zoe Kuhlkin, 01:08

3. Leadership Change at Verizon

New CEO Announcement:
Verizon has named Daniel Schulman (former PayPal CEO and founding CEO of Virgin Mobile USA) as its new Chief Executive (01:14).
Outgoing CEO:
- Hans Vestberg, CEO since 2018, will transition to a special advisor role through October next year (01:19).
- Vestberg will focus on integrating Frontier Communications, following Verizon’s $20 billion acquisition announcement (01:24).
- He remains on the board through the annual meeting.

Notable Quotes & Memorable Moments

On AMD–OpenAI Deal Challenge to Nvidia:

“The partnership marks one of the most direct challenges yet to industry leader Nvidia.”
— Zoe Kuhlkin, 00:44
On European Tech Funding Disparity:

“American AI and machine learning startups raised more than $160 billion in the first nine months of the year, while Europe pulled in around just $20 billion.”
— Zoe Kuhlkin, 01:00
On Europe’s Tech Sector Challenges:

“The region’s inability to create big tech firms is seen as one of the reasons for its stagnant economies.”
— Zoe Kuhlkin, 01:08

Timestamps for Key Segments

[00:15] – Announcement and details of the OpenAI and AMD deal
[00:38] – Estimated value and structure of the deal
[00:44] – Implications for Nvidia and the AI chip market
[00:51] – European founders moving to the US for AI investment
[00:58] – Comparative AI funding stats: US vs. Europe
[01:14] – Daniel Schulman named CEO of Verizon
[01:24] – Hans Vestberg’s new advisory role and Frontier acquisition integration

Episode Tone

Zoe Kuhlkin delivers the news in a concise, informative, and reportorial style, sticking closely to the facts and industry implications for a business-savvy audience.

Summary

This TNB Tech Minute highlights how OpenAI’s major procurement of AMD chips spotlights a new front in the AI hardware competition, especially regarding Nvidia’s dominance. The episode also addresses the structural and funding challenges facing Europe’s AI sector, contrasted with the US's robust investment climate. It closes with a significant executive shuffle at Verizon, underscoring ongoing transformations in the telecommunications sector.

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Transcript2 lines

[00:01]
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Exchanges on navigating macro uncertainty Exchanges on the forces shaping global markets for the sharpest analysis on finance, business and the economy, count on exchanges the Goldman Sachs Podcast Listen now. Here's your morning TNB Tech minute for Monday, October 6th. I'm Zoe Kuhlkin for the Wall Street Journal. OpenAI and Advanced Micro Devices have announced a multi billion dollar deal to collaborate on AI data centers that'll run on the chip designer's. Under the terms of the deal, OpenAI agreed to purchase 6 gigawatts worth of AMD's chips, starting with the Mi 450 chip next year, either directly or through its cloud computing partners. The two companies didn't say exactly how much the plan would cost, but AMD said it would be tens of billions of dollars per gigawatt of capacity. The partnership marks one of the most direct challenges yet to industry leader Nvidia. A new crop of European tech founders are heading to the US to seek funding for their startups, largely due to the heavy upfront costs for AI computing infrastructure and the need for specialist talent. It's become a concern for Europe as it tries to establish itself as a global AI hub to compete with China and the us. Comparatively, American AI and machine learning startups raised more than $160 billion in the first nine months of the year, while Europe pulled in around just $20 billion. That's according to PitchBook. The region's inability to create big tech firms is seen as one of the reasons for its stagnant economies, and Verizon has announced a new Chief Executive, former PayPal CEO and founding CEO of Virgin Mobile USA, Daniel Schulman Schulman will succeed Hans Vestberg, who's held the position since 2018. Vestberg will serve as special advisor to the company through October of next year, and he'll focus on integrating Frontier Communications, which Verizon announced plans to acquire last year for $20 billion. He'll remain on the board through its annual meeting. That's your TMB Tech Minute. Join us again this afternoon for more.
[02:03]
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