AMD to supply 6GW of compute capacity to OpenAI in chip deal worth tens of billions

AMD has signed a multi-year spot proviso woody with OpenAI that could make tens of billions successful gross for the chipmaker, helping accelerate its momentum in the AI industry. 

AMD has agreed to supply 6 gigawatts of compute capacity to OpenAI — capable to powerfulness up to 4.5 cardinal homes — across aggregate generations of its Instinct GPUs, starting with the Instinct MI450 GPU. OpenAI volition person the first gigawatt of capacity in the 2nd fractional of 2026, erstwhile the caller spot is scheduled for deployment. 

AMD claims the MI450 bid volition outperform Nvidia’s comparable offerings (NVIDIA Rubin CPX) done hardware and bundle improvements, galore of which volition beryllium made with OpenAI’s input. Its existent MI355X and MI300X series GPUs, presently utilized successful immoderate workloads for OpenAI, are already beardown for AI inference successful ample connection models owed to their ample representation capableness and bandwidth.  

As portion of the agreement, AMD has fixed OpenAI the enactment to bargain up to 160 cardinal shares of AMD stock, which amounts to a 10% stake. The archetypal tranche volition vest with the initial 1 gigawatt deployment, and further tranches volition vest arsenic OpenAI buys up to the full 6 gigawatts, AMD said. 

OpenAI’s involvement volition besides beryllium straight tied to expanding AMD’s banal terms milestones, with the last tranche vesting erstwhile the banal reaches $600 per share. For context, AMD shares closed astatine $164.67 connected Friday, but started disconnected Monday astatine $222.24, up astir 35% pursuing quality of the deal.

The woody comes arsenic OpenAI works to unafraid arsenic galore spot partnerships arsenic possible in its contention to physique retired AI infrastructure, including five new Stargate information centers with a planned capableness of 7 gigawatts.  

“We are thrilled to spouse with OpenAI to present AI compute at monolithic scale,” said Dr. Lisa Su, chair and CEO of AMD, successful a statement. “This concern brings the champion of AMD and OpenAI unneurotic to make a existent win-win enabling the world’s astir ambitious AI buildout and advancing the full AI ecosystem.” 

OpenAI CEO Sam Altman said successful a connection that the partnership is “a large measurement successful gathering the compute capableness to recognize AI’s afloat potential.” This is the latest of respective deals the AI elephantine has made successful caller weeks to secure compute capacity.  

Last period alone, Nvidia agreed to invest up to $100 billion in OpenAI and proviso the AI steadfast with astatine slightest 10 gigawatts; OpenAI and Broadcom besides signed a $10 billion deal to make and manufacture custom AI chips; and OpenAI said its Stargate inaugural with Oracle and SoftBank would beryllium expanding.  

Last week, OpenAI struck agreements with Samsung Electronics and SK Hynix to root DRAM representation chips for the Stargate project and physique information centers successful South Korea.