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 pinch OpenAI that could make tens of billions successful gross for nan 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 pinch nan Instinct MI450 GPU. OpenAI will person nan first gigawatt of capacity in nan 2nd half of 2026, erstwhile nan caller spot is scheduled for deployment. 

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

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

OpenAI’s liking will besides beryllium straight tied to expanding AMD’s banal value milestones, pinch nan last tranche vesting erstwhile nan 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 news of nan deal.

The woody comes arsenic OpenAI useful to unafraid arsenic galore spot partnerships arsenic possible in its title to build retired AI infrastructure, including five new Stargate information centers with a planned capacity of 7 gigawatts.  

“We are thrilled to partner pinch OpenAI to present AI compute at monolithic scale,” said Dr. Lisa Su, chair and CEO of AMD, successful a statement. “This business brings nan champion of AMD and OpenAI together to create a existent win-win enabling nan world’s astir eager AI buildout and advancing nan full AI ecosystem.” 

OpenAI CEO Sam Altman said successful a connection that nan partnership is “a awesome measurement successful building nan compute capacity to recognize AI’s afloat potential.” This is the latest of respective deals nan 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 nan AI patient pinch astatine slightest 10 gigawatts; OpenAI and Broadcom besides signed a $10 billion deal to create and manufacture custom AI chips; and OpenAI said its Stargate inaugural pinch Oracle and SoftBank would beryllium expanding.  

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