AMD has signed a multi-year chip supply agreement with Openai, which could generate revenue for Chipmaker’s hundreds of billions, helping to drive momentum in the AI industry.
AMD has agreed to supply 6 gigawatts of computing capacity to open allies enough to power up to 4.5 million homes across multiple generations of instinctive GPUs. Openai will receive its first gigawatt capacity in the second half of 2026, when the new chips are scheduled to be rolled out.
AMD claims that the MI450 series outperforms NVIDIA’s comparable product (NVIDIA Rubin CPX) through hardware and software improvements. The current Mi355X and MI300X series GPUs currently used in some OpenAI workloads are already powerful for AI inference on large language models due to their large memory capacity and bandwidth.
As part of the agreement, AMD gave Openai the option to buy up to 160 million shares of AMD shares. This is equivalent to 10% of the shares. The first tranche will be granted to the first 1 gigawatt deployment, with additional tranches being granted as Openai purchases up to a total of 6 gigawatts, AMD said.
Openai’s shares are also directly linked to an increase in AMD’s stock price milestone, with the final tranche vesting when the shares reach $600 per share. Due to context, AMD shares closed at $164.67 on Friday, but began at $222.24 starting Monday, up almost 35% following trading news.
The agreement comes as Openai work to ensure as many chip partnerships as possible in that competition to build an AI infrastructure that includes five new Stargate data centers with planned capacity of 7 gigawatts.
“We are excited to partner with Openai to deliver AI Compute on a large scale,” said Dr. Lisa Su, AMD Chairman and CEO. “This partnership brings the best of AMD and Openai, enabling the world’s most ambitious AI buildouts and creating a true win-win that advances the entire AI ecosystem.”
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Openai CEO Sam Altman said in a statement that the partnership is “a major step in building computing power to reach the full potential of AI.” This is the latest in some of the deals AI Giant has made over the last few weeks to ensure its computing power.
Last month alone, Nvidia agreed to invest up to $100 billion in Openai and supply at least 10 gigawatts to AI companies. Openai and Broadcom have also signed a $10 billion deal to develop and manufacture custom AI chips. And Openai said its Stargate initiative with Oracle and SoftBank will expand.
Last week, Openai signed an agreement with Samsung Electronics and SK Hynix, procuring DRAM memory chips for the Stargate project and building a data center in Korea.
