Openai and Advanced Micro Devices It has reached a deal where you can see Sam Altman’s company acquire 10% stake in the chip maker.
AMD shares surged more than 30% on Monday following the news.
Openai plans to deploy AMD’s 6 Gigawatt instinct graphics processing unit over multiple years and on multiple generations of hardware, the company said Monday. It will begin in the second half of 2026 with the first 1 gigawatt chip rollout.
“We have to do this,” President Open Greg Brockman told CNBC’s “Squawk on the Street.” “If we really want to be able to expand to reach everything in humanity, this is the heart of our mission. This is what we have to do.”
Blockman added that the company is already unable to announce many features in chatgpt and other products that could potentially make money due to lack of calculation power.
As part of the partnership, AMD has issued a warrant to Openai of up to 160 million shares of AMD common stock, with milestone vesting tied to both the volume of deployment and AMD share price.
The first tranche has won the best with the first full gigawatt deployment, unlocked as a 6 gigawatt scale as an Openai scale, meeting the critical technical and commercial milestones needed for a large rollout.
If Openai exercises a full warrant, it may take approximately 10% ownership of AMD based on its current share count.
The ChatGpt maker said the transaction was worth billions of dollars, but refused to disclose certain amounts.
AMD 1-Day Stock Chart.
The deal positions AMD as a core strategic partner of OpenAI and marks one of the largest GPU deployment contracts in the artificial intelligence industry to date.
AMD CEO Lisa Su told CNBC’s “Squawk on the Streets” that AI has been on a 10-year growth path, and “at the end of the day you need basic calculations to do that.”
“What we need to have a partnership like this is to bring the ecosystem together and ensure we can really get the best of technology,” she said. “So we’re very excited about the opportunity here.”
This partnership will help ease industry-wide pressure on the supply chain and reduce Openai’s reliance on a single vendor.
Openai announces groundbreaking agreements with $100 billion in stock and supply agreements nvidia Almost two weeks ago, we solidified the role of Chip Giants in empowering the next generation of Openai models. The arrangement combines capital investment with long-term hardware supply. In the case of Nvidia, Chipmaker took ownership of Openai.
Nvidia’s shares fell 1% on Monday following news of Openai-Amd trading.
That deal accounts for a dedicated 10 Gigawatt portion of Openai’s wider 23 Gigawatt infrastructure roadmap. Along with an estimated $50 billion construction costs per Gigawatt and AMD deal, Openai has pledged around $1 trillion in new build-out spending over the past two weeks.
Openai is also discussing it Broadcom Build custom chips for next-generation models.
The arrangement between Openai and AMD adds a new layer to the increasingly cyclical nature of the AI corporate economy. This layer is traded between the same few companies that capital, equity, and computing build and power technology.
Nvidia supplies capital to buy tips. Oracle We help you build the site. AMD and Broadcom are intervening as suppliers. Openai has fixed demand.
It’s a tough circular economy and I fear analysts are afraid if links within the chain start to weaken.
For AMD, partnerships are a commercial milestone and a verification of the next generation of instinct roadmap.
After years of driving Nvidia in the AI accelerator market, AMD has flagship customers at the forefront of the generation AI boom.
Su said it created “a true win-win that enables the world’s most ambitious AI build-outs and allows us to advance the entire AI ecosystem.”
It also strengthens Openai’s broader infrastructure ambitions.
Through the Stargate project, CEO Altman’s startup is rapidly transforming into one of the most aggressive infrastructure builders in the AI sector. The first site in Abilene, Texas is already in operation, running Nvidia chips, and construction continues to expand capacity.
Future builds in New Mexico, Ohio and the Midwest are expected to feature a mix of suppliers, including AMD.
Watch: Openai’s Sarah Friar says there’s a need to bring together a “complete ecosystem.”
