Advanced Micro Devices (AMD) has finalized a major multi-year agreement with OpenAI to supply high-performance AI chips. The deal also gives OpenAI the option to acquire up to a 10% stake in AMD, strengthening their strategic partnership.
Under the agreement, AMD will provide OpenAI with its upcoming Instinct MI450 chips, designed to handle large-scale AI workloads efficiently. The initial deployment is set to begin in the second half of 2026, with plans to scale up to 6 gigawatts of computing power over the following years. This expansion aims to support OpenAI’s growing infrastructure as it develops more advanced AI models.
This partnership positions AMD as a strong competitor in the AI chip market, challenging Nvidia’s dominance. By securing a major contract with OpenAI, AMD expects to enhance its presence in AI data centers, potentially boosting long-term revenue. The option for OpenAI to acquire up to 160 million shares of AMD at a nominal price further aligns the interests of both companies, contingent on performance and share-price targets.
Following the announcement, AMD’s stock surged, reflecting investor confidence in the company’s strategic direction and the potential benefits of the collaboration. Analysts note that the partnership highlights the growing demand for specialized AI hardware and the importance of strategic alliances in meeting these needs.
As OpenAI continues to expand its AI infrastructure, the deal with AMD underscores its commitment to leveraging cutting-edge technology to advance AI capabilities. The collaboration not only strengthens AMD’s position in the AI sector but also sets the stage for future innovations in AI hardware development.
This agreement is seen as a pivotal move in the AI hardware race, signaling a closer collaboration between leading AI developers and chip manufacturers to meet the ever-increasing computational demands of advanced artificial intelligence systems.
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