"Semiconductor maker AMD will supply its chips to artificial intelligence company OpenAI as part of an agreement to team up on building AI infrastructure, the companies said Monday. OpenAI will also get the option to buy as much as a 10% stake in AMD, according to a joint statement announcing the deal. It's the latest deal for the ChatGPT maker as it races to beef up its AI computing resources."
"The agreement calls for supplying 6 gigawatts of computing power for OpenAI's "next generation" AI infrastructure, with the first batch of chips worth 1 gigawatt to be deployed in the second half of 2026. AMD also issued OpenAI with a warrant allowing the AI company to buy up to 160 million shares of AMD's common stock. That amounts to about 10% of the chipmaker based on AMD's 1.6 billion outstanding shares."
""This partnership is a major step in building the compute capacity needed to realize AI's full potential," OpenAI CEO Sam Altman said in a news release. "AMD's leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster." The deal is a boost for Santa Clara, Calif.-based AMD, which has been left behind by rival Nvidia."
OpenAI will source high-performance AMD Instinct MI450 chips as part of a partnership to build next-generation AI infrastructure. The agreement targets delivery of 6 gigawatts of computing capacity, with an initial 1-gigawatt deployment planned for the second half of 2026. AMD granted OpenAI a warrant to buy up to 160 million shares, equating to about 10% of AMD based on 1.6 billion outstanding shares, with vesting tied to compute deployment milestones and share-price targets. The deal caused AMD shares to jump about 25% premarket and signals OpenAI's move to diversify suppliers beyond Nvidia.
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