AMD strikes multi-billion-dollar AI deal with OpenAI

The multi-year agreement between AMD and OpenAI entails OpenAI deploying 6 gigawatts of AMD Instinct GPUs over multiple hardware generations, starting with a 1-gigawatt rollout of the MI450 series in the second half of 2026. AMD granted OpenAI a warrant for up to 160 million shares at one cent per share, with vesting tied to deployment milestones and stock price targets, potentially giving OpenAI up to a 10% stake in AMD. This partnership marks a strategic alliance aimed at large-scale AI deployments, deepening their collaboration from previous generations of AMD chips.

The deal is a direct challenge to Nvidia's approximately 80% market share in AI chips. OpenAI had recently announced a $100 billion agreement with Nvidia for 10 gigawatts of computing power, making the AMD deal a complementary strategy to diversify hardware supply. AMD expects the deal to generate tens of billions in annual revenue and over $100 billion in additional revenue over four years. The partnership validates AMD's competitive GPU roadmap and is expected to significantly boost AMD’s financial performance, while also positioning AMD as a core strategic compute partner for OpenAI's AI infrastructure growth.