Nvidia, Broadcom and AMD Face New Risks From OpenAI Deals

The deals keep coming for semiconductor firms and OpenAI. In the past month, Nvidia, Advanced Micro Devices and Broadcom have each reached very different agreements to supply chips to OpenAI. The arrangements open up all three to the risk that OpenAI, which expects to burn $115 billion through 2029, can’t afford to keep its commitments. The deals pose different risks to each company’s business, but AMD faces the biggest downside because its shares have rallied more than 40% since the...