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

OpenAI has signed a multi-year agreement with Advanced Micro Devices (AMD) to deploy up to 6 gigawatts of AMD Instinct GPUs, marking a significant step in the evolution of artificial intelligence infrastructure. This partnership, valued in the billions, could also lead to OpenAI acquiring a 10% stake in AMD, solidifying their collaboration in the AI sector.

The deal will commence with a 1-gigawatt rollout of AMD’s upcoming MI450 GPUs in the second half of 2026. Over several years, the deployment is expected to scale to 6 gigawatts, supporting OpenAI’s advancements in AI models and services. This arrangement is one of the largest GPU deployment agreements ever made in the AI field.

In an official statement, Dr. Lisa Su, AMD’s chair and CEO, expressed enthusiasm for the partnership, highlighting it as a means to deliver AI computing on a massive scale. She stated, “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 CEO Sam Altman echoed this sentiment, describing the agreement as “a major step in building the compute capacity needed to realize AI’s full potential.” He noted that AMD’s expertise in high-performance chips would accelerate progress in AI technology, making its benefits accessible to a broader audience.

Equity Agreement and Financial Implications

As part of this collaboration, AMD has issued OpenAI a warrant for up to 160 million shares of AMD common stock. The vesting of these shares will be linked to specific deployment milestones and AMD’s stock performance. The initial tranche will activate with the first 1-gigawatt rollout, while subsequent tranches will depend on the full-scale deployment reaching 6 gigawatts. If OpenAI exercises the full warrant, it could secure approximately 10% of AMD based on current shares outstanding.

While the companies have not disclosed the exact dollar value of the deal, they confirmed it spans several billion dollars. Jean Hu, AMD’s executive vice president and CFO, stated the agreement is projected to generate “tens of billions of dollars in revenue for AMD” and to be highly beneficial to its non-GAAP earnings per share.

Strategic Importance for AI Development

OpenAI President Greg Brockman emphasized the necessity of this deal for scaling AI technology worldwide. He remarked, “We have to do this. This is so core to our mission if we really want to be able to scale to reach all of humanity, this is what we have to do.” Brockman highlighted that current limitations in computing capacity hinder OpenAI’s ability to launch several features in its products, including ChatGPT.

This partnership also diversifies OpenAI’s chip supply, reducing its reliance on a single vendor. Just two weeks prior, OpenAI announced a separate $100 billion equity and supply agreement with NVIDIA for a dedicated 10-gigawatt section of its 23-gigawatt AI roadmap. Collectively, these partnerships with AMD and NVIDIA represent approximately $1 trillion in new commitments for AI infrastructure.

AMD’s Lisa Su stated that the growth of AI will unfold over the next decade, stressing the importance of collaborative efforts to ensure the best technologies are available. OpenAI is also in discussions with Broadcom to develop custom chips for future projects. As AMD, NVIDIA, Oracle, and others play pivotal roles in this evolving landscape, the corporate economy surrounding AI is becoming increasingly interconnected, with capital, equity, and computing resources flowing among a select group of industry leaders.

This partnership between OpenAI and AMD not only signifies a monumental shift in AI capabilities but may also reshape the competitive landscape of the technology sector.