OpenAI and AMD announce multibillion-dollar partnership — AMD to supply 6 gigawatts in chips, OpenAI could get up to 10% of AMD shares in return

OpenAI and AMD have announced a multibillion-dollar partnership that will see the companies collaborate on AI data centers powered by AMD processors. OpenAI has committed to purchasing 6 gigawatts of AMD chips, starting with the MI450 next year. That will be done either by purchasing the chips directly from AMD or through cloud computing partners. AMD CEO Lisa Su told the WSJ that the deal would generate tens of billions of dollars in revenue for AMD over the next five years.

The two companies are not disclosing the exact financial details of the deals. However, AMD emphasized that each "per gigawatt" of capacity is worth tens of billions of dollars, so it's possible the deal is worth upwards of $60 billion.

In return, OpenAI will receive warrants for up to 160 million AMD shares, approximately 10% of AMD, at a price of $0.01 per share, to be awarded in phases, provided that OpenAI meets deployment milestones. The warrants will only be exercised if AMD's share price increases, although again, the specifics are unclear.

The deal is an enormous win for AMD and stands juxtaposed with Nvidia's groundbreaking Intel partnership announced last month. Under the terms of that deal, Nvidia and Intel are jointly developing Intel x86 RTX SOCs for PCs featuring Nvidia graphics, as well as custom Nvidia data center x86 processors. Nvidia also received $5 billion in Intel stock as part of the deal.

OpenAI will use AMD's chip for inference in order to cope with skyrocketing demand. "It’s hard to overstate how difficult it’s become... We want it super fast, but it takes some time." OpenAI's Sam Altman said to WSJ.

"We are thrilled to partner with OpenAI to deliver AI compute at massive scale," said Dr. Lisa Su, chair and CEO, AMD. "This partnership brings the best of AMD and OpenAI together to create a true win-win enabling the world’s most ambitious AI buildout and advancing the entire AI ecosystem."

The first deployment will be 1 gigawatt worth of MI450 chips, scheduled for the second half of 2026. Altman said the AI buildout has reached a phase "where the entire industry’s got to come together and everybody’s going to do super well," not only on chips and data centers, but also further down the supply chain too.

OpenAI has also inked a $100 billion deal with OpenAI, and will use Nvidia's investment to secure and deploy 10 gigawatts worth of AI data centers. While that deal isn't finalized, AMD and OpenAI reportedly say this deal is "definitive" and plan to immediately file the requisite details with regulators, a step that has yet to happen in the Nvidia deal.

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