OpenAI has signed a multi-year deal with chipmaker AMD to deploy billions of dollars worth of AMD GPUs for building its next-generation AI infrastructure. Under the agreement, OpenAI will deploy six gigawatts worth of AMD GPUs, starting with the first one-gigawatt deployment of AMD Instinct MI450 GPUs in the second half of 2026.
OpenAI CEO Sam Altman, while reacting to the deal in a joint release, said, “AMD’s leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster.”
AMD has also issued the ChatGPT maker with a warrant to buy up to 160 million shares of its stock, which is roughly 10% of the chipmaker’s share. The warrant will vest based on AMD achieving a certain share price target and OpenAI achieving technical and commercial milestones required to enable AMD deployments at scale. The first tranche vests with the initial one-gigawatt deployment in 2026.
AMD executives believe that the deal with OpenAI wold help bring in tens of billions of dollars in annual revenue and as a ripple effect of the agreement, it expects to receive more than $100 billion in new revenue over four years from OpenAI and other customers, Reuters reported.
AMD shares were up by more than 35% in the pre-market trading after the announcement and if the trend holds it could put them on track to open at their highest level since March 2024.
