AMD and OpenAI Forge Landmark Partnership to Power Next-Gen AI with 6 Gigawatts of GPUs
AMD and OpenAI collaborate to deploy massive GPU infrastructure, enhancing AI capabilities and shaking up the AI chip market.
- • AMD and OpenAI will deploy 6 gigawatts of AMD Instinct MI450 GPUs for next-gen AI infrastructure.
- • Initial deployment of 1 gigawatt scheduled for the second half of 2026.
- • OpenAI has an option to acquire up to 10% stake in AMD and received warrants for up to 160 million shares.
- • AMD shares rose nearly 24% after the announcement; Nvidia shares fell by 1%.
- • The partnership aims to meet soaring AI compute demands and drive significant revenue growth for AMD.
Key details
AMD and OpenAI have announced a strategic partnership to deploy 6 gigawatts of AMD Instinct MI450 GPUs to support OpenAI's next-generation AI infrastructure, marking a significant advancement in AI computing capabilities. The initial phase, involving the deployment of 1 gigawatt of these GPUs, is set to commence in the second half of 2026. This collaboration leverages AMD's expertise in high-performance computing along with OpenAI's leadership in generative AI to accelerate AI innovation and meet escalating computational demands.
As part of the agreement, AMD has issued OpenAI a warrant to purchase up to 160 million shares of AMD common stock, reflecting roughly 10% of AMD’s outstanding shares, contingent on achieving specific deployment and share-price milestones. The deal also grants OpenAI an option to acquire up to a 10% stake in AMD, further solidifying their partnership. Following the announcement, AMD's shares surged nearly 24%, whereas shares of Nvidia, the current dominant player in AI chips, fell by 1%, signaling a shift in market dynamics.
OpenAI CEO Sam Altman emphasized the importance of this partnership, stating it is "crucial for building the necessary compute capacity to unlock AI's full potential." AMD’s CFO projected that this collaboration could generate tens of billions of dollars in revenue for AMD, highlighting its substantial financial impact.
Barclays analysts noted that while this partnership may not directly rival Nvidia, it underscores the urgent, growing demand for AI computing resources and the need for diversified supply chains. This deal represents a major evolution in the AI infrastructure landscape, with AMD and OpenAI poised to scale the capabilities essential for future AI advancements.