OpenAI, AMD Seal Multi-Year Partnership For Chip Supply
OpenAI has entered a landmark multi-year partnership with U.S. chipmaker Advanced Micro Devices (AMD) to secure a large supply of high-performance graphics processing units (GPUs) for its artificial intelligence infrastructure a move seen as a major shift in the AI chip landscape long dominated by Nvidia.
Under the agreement, OpenAI plans to deploy up to 6 gigawatts (GW) of AMD GPUs, beginning with an initial 1 GW rollout scheduled for the second half of 2026.
The deployment will be powered by AMD’s upcoming Instinct MI450 series accelerators, designed specifically for large-scale AI model training and inference.
According to details released on AMD’s investor relations website, the deal is multi-generation and multi-year, expected to generate tens of billions of dollars in revenue for AMD over the life of the partnership.
To strengthen their collaboration, AMD has granted OpenAI warrants to purchase up to 160 million AMD shares, potentially giving the AI firm up to a 10 percent stake in the semiconductor company if performance milestones are met.
The partnership is non-exclusive, meaning OpenAI will continue working with other chip suppliers, including Nvidia, while also advancing its in-house chip development projects through collaborations with companies such as Broadcom.
Industry analysts view the agreement as a major win for AMD, which has been striving to expand its footprint in the booming AI hardware market.
The deal not only enhances AMD’s position as a credible competitor to Nvidia but also gives OpenAI an alternative supply chain amid global shortages of advanced AI chips.
Experts say the partnership underscores the growing infrastructure demands of AI companies as they expand large-language models and generative AI platforms.
The deployment of 6 GW of GPU power will require significant investment in data centers, cooling systems, and energy management.
The collaboration is expected to accelerate AI innovation and scale, potentially reshaping competitive dynamics within the semiconductor industry as demand for high-performance chips continues to surge.
