OpenAI, AMD sign chip supply partnership for AI infrastructure

SAN FRANCISCO

U.S. chipmaker AMD has agreed to supply artificial intelligence chips to OpenAI under a multi-year partnership aimed at expanding the ChatGPT developer's AI infrastructure, with an option for OpenAI to acquire up to a 10 percent stake in the semiconductor firm.

The companies announced the deal on Oct. 6, marking another move by OpenAI to scale up its computing resources amid surging demand for advanced AI systems.

As part of the agreement, OpenAI will purchase AMD's upcoming Instinct MI450 high-performance graphics chips, set for release next year.

The pact involves delivering 6 gigawatts of computing power for OpenAI's next-generation AI setup, starting with a 1-gigawatt deployment in the second half of 2026.

AMD has granted OpenAI a warrant to purchase up to 160 million shares of its common stock, equivalent to about 10 percent based on the chipmaker's 1.6 billion outstanding shares. The warrant vests upon meeting milestones related to computing power rollout and certain share-price targets.

AMD shares jumped over 34 percent on Oct. 6 following the announcement, while rival Nvidia's stock dipped 1 percent.

“This partnership is a major step in building the compute capacity needed to realize AI’s full potential,” OpenAI CEO Sam Altman said in a news release.

“AMD’s leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster.”

The collaboration provides a lift for AMD, headquartered in Santa Clara, California, which has trailed behind Nvidia in the AI chip market. It also signals OpenAI's strategy to diversify suppliers beyond Nvidia, whose chips have dominated the AI surge and propelled it to become the world's most valuable company.