Under a strategic initiative to expand its hardware base, OpenAI has inked a multiyear contract with Advanced Micro Devices (AMD). Under the contract, AMD would provide artificial intelligence chips which would help OpenAI’s vast computational needs. OpenAI also gets a warrant as part of the agreement allowing it to purchase up to 10% of AMD’s stocks, subject to performance milestones and chip distribution conditions.
With the initial six gigawatts of AMD’s graphics processing equipment planned to be deployed through the course of the agreement, OpenAI stated under the terms on Monday. It also includes a one-gigawatt deployment planned for late 2026. The chips that are to be delivered are expected to be those of AMD’s upcoming Instinct MI450 series.
The agreement gives OpenAI warrants to purchase up to 160 million shares of Advanced Micro Devices (AMD)
The market responded quickly: AMD’s stock shot up in premarket trading after the disclosures, mirroring investor excitement for the extended contract and the equity sweeteners. Analysts estimate the overall reachable income from this partnership might be in the tens of billions yearly. OpenAI’s strategic move highlights a strong will to vary chip supply beyond its current connections, especially with Nvidia’s recent development in AI and robotics lab
OpenAI leaders said in a statement that the deal complements rather than replaces existing hardware investments. The agreement indicateAMD and OpenAI announced strategic partnership
