AMD has agreed to a multi-billion-dollar partnership to supply its artificial intelligence chips to OpenAI.
The multi-year deal, announced Monday, will see OpenAI deploy 6 gigawatts of AMD GPUs, with the first 1 gigawatt deployment set to begin in the second half of 2026.
“This partnership is a major step in building the compute capacity needed to realize AI’s full potential,” Sam Altman, cofounder and CEO of OpenAI, said in the Monday announcement.
The move provides a significant boost to AMD against Nvidia, which is the dominant player in the AI chip market.
It also gives OpenAI the opportunity to take a roughly 10% stake in AMD, with shares vesting as the companies hit deployment targets and AMD hits share price targets.
AMD’s chief financial officer, Jean Hu, said the deal is expected to deliver “tens of billions of dollars in revenue” for the company.
AMD’s share price was up as much as 27% in premarket trading on Monday.
The first deployment of chips is set to be AMD’s Instinct MI450 Series GPUs, which can be used for both training AI models and inference.
In a statement, Lisa Su, the chair and CEO of AMD, called the partnership a “true win-win” that will advance the entire AI ecosystem.
It’s the latest example of OpenAI striking major AI chip partnerships. Last month, Nvidia announced plans to invest $100 billion in OpenAI, a deal that would give the ChatGPT maker access to 10 gigawatts of high-powered GPUs. And in July, OpenAI entered a partnership with Oracle to develop up to 4.5 gigawatts of AI compute capacity in a deal worth more than $300 billion over five years.
In response to requests for comment, AMD and OpenAI directed Business Insider to statements on their press pages.
