The battle for supremacy in the AI chip market just reached a critical new phase. In a move that sent its stock soaring, Advanced Micro Devices (AMD) announced a major multi-year partnership with OpenAI. The deal has the potential to fundamentally reshape the industry’s supply chain. OpenAI, which is racing to build the immense computing power needed for the next generation of artificial intelligence, has committed to deploying an astonishing 6 gigawatts (GW) of AMD Instinct GPUs.
This agreement is far more than a simple hardware purchase. It represents one of the largest GPU deployment contracts in AI history and serves as a powerful endorsement of AMD’s accelerator technology.
OpenAI and AMD deal: Equity for GPU compute power
In exchange for this massive, multi-year commitment, AMD has granted OpenAI a warrant to acquire up to 160 million shares. This could eventually translate to a roughly 10% stake in the chipmaker.
The unconventional arrangement aims to tie the success of the two companies together. The vesting of the shares is directly linked to OpenAI hitting deployment milestones—starting with the initial 1 GW rollout of AMD’s MI450 series chips in late 2026—and the continued increase in AMD’s share price. AMD CEO Lisa Su noted that this incentive motivates OpenAI to ensure the successful integration of AMD’s hardware, turning the customer into a strategic partner invested in the chipmaker’s long-term success.
The unprecedented scale of AI
The sheer scale of this deployment reflects the AI industry’s relentless demand for computing power. This 6 GW commitment to AMD, combined with OpenAI’s prior agreements with other vendors (including a major 10 GW infrastructure deal with Nvidia), confirms that the AI startup is proceeding with a multi-trillion-dollar infrastructure roadmap.
For AMD, this partnership is a turning point. The firm expects the agreement to net tens of billions of dollars in annual revenue. It also forecasts that the ripple effect will generate over $100 billion in new revenue from OpenAI and subsequent customers over the next four years. Nvidia still commands the lion’s share of the market, though. However, this deal firmly establishes AMD as a serious player capable of supplying the advanced computing technology needed for AI’s hyperscale future.
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