OpenAI and AMD Forge $6 Billion GPU Partnership to Accelerate AI

OpenAI has entered into a significant multi-year agreement with Advanced Micro Devices (AMD) to deploy up to 6 gigawatts of GPU technology, a deal valued in the billions. This partnership not only strengthens their collaboration but also positions OpenAI to potentially acquire a 10% stake in AMD.

The agreement, described as one of the largest GPU deployment arrangements in the history of artificial intelligence, will commence with an initial rollout of 1 gigawatt of AMD’s upcoming Instinct MI450 GPUs set to begin in March 2026. The partnership aims to scale the deployment to the full 6 gigawatt capacity over multiple generations of AMD hardware, significantly enhancing OpenAI’s computational capabilities.

Both companies have committed to sharing technical expertise to align their product roadmaps and advance AI hardware and software collaboratively. Dr. Lisa Su, chair and CEO of AMD, expressed excitement about the partnership, stating, “We are thrilled to partner with OpenAI to deliver AI compute at massive scale. This partnership brings the best of AMD and OpenAI together to create a true win-win enabling the world’s most ambitious AI buildout and advancing the entire AI ecosystem.”

OpenAI’s CEO, Sam Altman, emphasized the importance of this agreement in building the necessary computing power to fully realize the potential of AI. He noted that AMD’s leadership in high-performance chips would accelerate AI advancements, making their benefits accessible to a wider audience.

As part of the deal, AMD has provided OpenAI with a warrant for up to 160 million shares of AMD common stock. This warrant will vest in tranches linked to deployment milestones and AMD’s share price. The first tranche will be unlocked with the initial 1-gigawatt rollout, while subsequent tranches will be tied to the complete 6-gigawatt scale-up. If OpenAI exercises the full warrant, it could lead to a 10% ownership stake in AMD, based on current shares outstanding.

While the companies have not disclosed the total dollar value of the deal, it is confirmed to encompass several billion dollars. Jean Hu, AMD’s executive vice president and CFO, stated that this agreement is projected to generate “tens of billions of dollars in revenue for AMD” and will have a significant positive impact on its non-GAAP earnings per share.

OpenAI President Greg Brockman highlighted the necessity of this partnership in scaling AI operations globally. “We have to do this,” he remarked. “This is so core to our mission if we really want to be able to scale to reach all of humanity.” He pointed out that current limitations in computing capacity prevent OpenAI from launching several features across its products, including ChatGPT.

The partnership also serves to diversify OpenAI’s chip supply, reducing reliance on any single vendor. Just two weeks prior to this announcement, OpenAI unveiled a $100 billion equity-and-supply agreement with NVIDIA, which includes a dedicated 10-gigawatt segment of its larger 23-gigawatt AI roadmap. The combined agreements with NVIDIA and AMD reflect a commitment of approximately $1 trillion toward new developments in AI infrastructure.

Dr. Su noted the long-term implications of AI growth, stating, “You need partnerships like this that really bring the ecosystem together to ensure that we can really get the best technologies out there.” OpenAI is also reportedly in discussions with Broadcom to design custom chips for future models, further emphasizing the collaborative nature of the AI sector.

As companies like AMD, NVIDIA, and Oracle play pivotal roles in shaping the future of artificial intelligence, the corporate landscape of AI is becoming increasingly interconnected. This evolving environment allows for capital, equity, and computing resources to flow among a select group of companies, all contributing to the next generation of AI advancements.