OpenAI has announced a groundbreaking multi-year agreement with Advanced Micro Devices (AMD) that includes acquiring up to a 10% stake in the semiconductor giant. The deal grants OpenAI warrants to purchase up to 160 million shares of AMD at a nominal price, vesting in phases tied to deployment milestones and AMD’s stock performance. This strategic move comes alongside OpenAI’s plan to deploy 6 gigawatts of AMD’s MI450 GPUs over several years, starting with a 1-gigawatt rollout scheduled for the second half of 2026. The agreement, valued in the billions, highlights a deepening partnership that solidifies AMD’s position against AI chip market leader Nvidia and signals a major bet by OpenAI on AMD’s computing hardware capabilities.
AMD’s stock surged more than 25% following the announcement, reflecting investor confidence in the company’s future revenue growth and its expanding footprint in artificial intelligence infrastructure. AMD expects this deal to generate tens of billions of dollars in revenue over the coming years, fueled by OpenAI’s extensive use of its GPUs and the broader ecosystem that may follow suit. OpenAI’s acquisition of stakes is conditioned upon achieving key technical and commercial milestones, ensuring a performance-driven partnership. This collaboration also symbolizes a transformative shift in the AI chip industry dynamics, providing AMD a significant validation and a competitive edge against Nvidia, the current dominant player.
Sam Altman, CEO of OpenAI, emphasized the partnership’s strategic importance, noting that AMD’s specialized high-performance chips will accelerate AI advancements and help scale AI infrastructure to meet their growing computational demands. Unlike a direct equity investment, the warrant mechanism allows OpenAI to gain ownership over time, aligning interests with AMD’s business success and stock performance. This deal follows OpenAI’s recent landmark $100 billion agreement with Nvidia, indicating OpenAI’s ambition to diversify its hardware base while securing substantial chip supplies critical for developing next-generation AI models, including ChatGPT and beyond.
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(Source: CNBC | Reuters | New York Times)
