AMD has announced a partnership with OpenAI to supply AI chips that will power the ChatGPT creator’s next-generation artificial intelligence infrastructure.
The deal, potentially exceeding $100 billion in revenue over four years, reflects AMD’s dominance in the AI hardware market and its rising challenge to Nvidia’s leadership in high-performance computing.
AMD said it will supply OpenAI with AI compute capacity equivalent to 6 gigawatts, using its AMD Instinct MI450 GPUs. The first 1-gigawatt deployment is set to begin in the second half of 2026, marking the start of one of the largest AI infrastructure expansions in the industry’s history.
As part of the deal, OpenAI will have the option to acquire up to 160 million AMD shares at $0.01 per share, potentially representing nearly 10 percent of AMD’s total stock. The warrants will vest in multiple tranches based on deployment milestones, share price targets — ranging up to $600 per share — and OpenAI’s technical achievements in scaling AI systems.
Dr. Lisa Su, Chair and CEO of AMD, said: “This partnership brings the best of AMD and OpenAI together to enable the world’s most ambitious AI buildout and advance the entire AI ecosystem.”
Sam Altman, Co-founder and CEO of OpenAI, said: “AMD’s leadership in high-performance chips will allow us to accelerate AI progress and bring its benefits to everyone faster.”
This multi-gigawatt partnership follows AMD’s previous collaborations with OpenAI on the MI300X and MI350X GPU series. The new deal extends their collaboration into future generations of AI hardware and software optimization, ensuring that both companies remain at the forefront of AI innovation and large-scale compute deployment.
The announcement has triggered a strong market reaction, with AMD shares soaring over 35 percent in premarket trading, positioning the company to open at its highest level since March 2024, Reuters news report said.
Building the Future of AI
For OpenAI, this partnership represents a critical step toward meeting its ever-growing compute needs as it develops next-generation large language models (LLMs) and generative AI applications. The deal reinforces OpenAI’s commitment to scaling responsibly while exploring new hardware partnerships beyond Nvidia.
“Working alongside AMD will allow us to scale to deliver AI tools that benefit people everywhere,” said Greg Brockman, President and Co-founder of OpenAI. With the world’s appetite for AI compute capacity accelerating, the AMD–OpenAI partnership signifies a new era in AI hardware innovation, uniting cutting-edge GPU technology, long-term strategic collaboration, and unprecedented infrastructure scale.
Rajani Baburajan
