AMD to Power OpenAI's Next-Gen AI Infrastructure, OpenAI May Buy 10% Stake
AMD and OpenAI have struck a significant deal, with AMD agreeing to supply 6 gigawatts of computing power for OpenAI's next-generation AI infrastructure. The agreement also includes an option for OpenAI to purchase up to a 10% stake in AMD, hinting at OpenAI's desire to diversify its supply chain away from Nvidia's dominance in AI chip supply.
AMD has issued OpenAI a warrant allowing it to buy up to 160 million shares of AMD's common stock, about 10% of the company. This warrant will vest based on computing power deployment milestones and unspecified share-price targets. The first batch of AMD's latest high-performance graphics chips, the Instinct MI450, is expected to be deployed in the second half of 2026, with a computing power of 1 gigawatt.
OpenAI CEO Sam Altman expressed enthusiasm about the partnership, stating that it will accelerate progress in AI and bring its benefits to everyone faster. This deal comes after Nvidia's strategic partnership with OpenAI, in which Nvidia planned to invest up to 100 billion dollars in OpenAI, marking one of the largest single investments in the AI sector.
The agreement between AMD and OpenAI has sparked a significant reaction in the market. Shares of AMD spiked 25% before the opening bell on Monday, while Nvidia's shares fell slightly. This collaboration is set to strengthen AMD's position in the AI chip market and further OpenAI's AI infrastructure development.
