AMD To Supply 6GW Of Compute Capacity To OpenAI In Chip Deal Worth Tens Of Billions
AMD is taking a major leap in the AI chip race. The company has officially announced that AMD will supply 6GW of compute capacity to OpenAI in a chip deal worth tens of billions, marking one of the largest partnerships in AI infrastructure to date.
Image Credits:Getty Images
This multi-year agreement could generate massive revenue for AMD, solidifying its position as a top competitor to Nvidia in the rapidly growing AI hardware market.
Inside AMD’s Multi-Billion Dollar Chip Deal With OpenAI
Under the deal, AMD will deliver 6 gigawatts of compute capacity — enough to power approximately 4.5 million homes — across multiple generations of its Instinct GPUs, beginning with the Instinct MI450 GPU.
OpenAI is expected to receive the first 1 gigawatt of compute capacity in the second half of 2026, when AMD’s new GPU line officially launches.
AMD stated that this rollout marks the start of a long-term collaboration that blends OpenAI’s software optimization with AMD’s advanced hardware capabilities.
AMD’s MI450 GPUs Set To Rival Nvidia’s AI Dominance
AMD claims its Instinct MI450 series will outperform Nvidia’s Rubin CPX chips, thanks to new hardware and software improvements developed in collaboration with OpenAI.
The company’s current MI355X and MI300X GPUs already power some of OpenAI’s workloads. These chips have earned praise for their large memory capacity and bandwidth, making them ideal for AI inference and large language model processing.
With the MI450 generation, AMD is positioning itself as the first true challenger to Nvidia’s long-standing dominance in the AI data center market.
OpenAI’s Potential 10% Stake In AMD
As part of the agreement, AMD has granted OpenAI the option to buy up to 160 million shares of AMD stock — roughly a 10% stake in the company.
The first tranche of shares will vest once the initial 1GW of compute is deployed, with additional tranches unlocking as OpenAI scales up to the full 6GW.
Notably, OpenAI’s equity stake will also be linked to AMD’s stock performance. The final tranche will vest once AMD shares hit $600 per share — a milestone that reflects growing investor confidence.
Following the announcement, AMD’s stock surged from $164.67 on Friday to $222.24 on Monday, jumping nearly 35% on news of the record-breaking deal.
A Strategic Shift In The AI Hardware Landscape
The announcement that AMD will supply 6GW of compute capacity to OpenAI in a chip deal worth tens of billions underscores a major shift in the AI hardware ecosystem.
OpenAI has long relied heavily on Nvidia GPUs for its compute infrastructure. However, this new partnership suggests a strategic diversification — and perhaps a growing need for alternative suppliers as AI model training and inference demand skyrockets.
For AMD, the deal represents not just revenue growth but a crucial validation of its AI-focused GPU roadmap and a chance to shape the next generation of AI supercomputing.
With this partnership, AMD and OpenAI are aligning their strengths to accelerate the global AI revolution. The deal doesn’t just reshape AMD’s growth trajectory — it also highlights how the competition for AI compute power is intensifying across the semiconductor industry.
If successfully executed, AMD’s 6GW chip deal could mark the beginning of a new era where OpenAI’s innovation meets AMD’s engineering, driving the next wave of breakthroughs in artificial intelligence.
Post a Comment