OpenAI strikes multi-year deal with AMD for AI chips, plans Gigawatt-scale deployment

New York: OpenAI and semiconductor giant Advanced Micro Devices (AMD) announced a multi-year partnership in which OpenAI will invest in AMD as part of a massive plan to deploy “six gigawatts” of artificial intelligence chips.

Under the agreement, AMD will supply its latest high-performance graphics processing units (GPUs) to power OpenAI’s next-generation AI infrastructure. The first one-gigawatt deployment is scheduled for the second half of 2026.

“This partnership is a major step in building the compute capacity needed to realise AI’s full potential,” OpenAI CEO Sam Altman said in a statement. “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 also includes a warrant giving OpenAI the option to purchase up to 160 million shares of AMD common stock, roughly 10% of the company. Vesting of the warrant will depend on milestones tied to the amount of computing power deployed.

For Santa Clara-based AMD, the partnership represents a significant boost as it competes with rival Nvidia, which has dominated the AI chip market amid soaring demand. By teaming up with OpenAI, AMD aims to strengthen its position in the rapidly expanding artificial intelligence sector.