OpenAI and AMD Announce Multi-Billion AI Chip Deal

On October 6, OpenAI and AMD announced a multibillion-dollar partnership to jointly develop next-generation AI data centers powered by AMD processors — a move seen as one of the most direct challenges yet to industry leader NVIDIA.

Under the four-year agreement, AMD will supply OpenAI with hundreds of thousands of AI chips, with OpenAI committing to purchase up to 6 gigawatts' worth of AMD hardware. Starting next year, OpenAI will begin procuring the new Instinct MI450 chips, either directly or through its cloud computing partners.

The partnership positions AMD as a key strategic computing ally for OpenAI, focusing on the large-scale deployment of AMD's AI technology. Collaboration will begin with the Instinct MI450 series and rack-level AI systems, then expand to future generations. Both companies will share technical expertise to refine product roadmaps, building on their ongoing cooperation across AMD's MI300X and MI350X platforms.

As part of the deal, AMD has also issued warrants to OpenAI, allowing it to purchase up to 160 million AMD shares at an exercise price of $0.01 per share, contingent on meeting stock price milestones and deployment progress. If fully exercised, this would represent about 10% of AMD's total equity.

AMD expects the agreement to generate tens of billions of dollars in new revenue over the next five years while accelerating the development of OpenAI's computing infrastructure.

AMD Chair and CEO Lisa Su said, "We're excited to partner with OpenAI to deliver AI compute at unprecedented scale. This collaboration combines the strengths of both companies to drive one of the world's most ambitious AI initiatives and advance the broader AI ecosystem."

OpenAI CEO Sam Altman added, "This partnership marks an important step in building the computational power needed to unlock AI's full potential. AMD's leadership in high-performance chips will help us move faster and bring the benefits of advanced AI to everyone."