AMD is partnering with OpenAI to provide six gigawatts worth of processors for AI data centers, a move that challenges Nvidia’s AI chip market dominance. The five-year agreement aims to help OpenAI bolster its infrastructure to meet growing computational demands for AI applications like ChatGPT, starting with a gigawatt deployment of AMD Instinct MI450 GPUs in the second half of 2026, according to AMD’s press release.
AMD said it expects the agreement to deliver “tens of billions of dollars in revenue” without providing specific details. AMD’s stock price is up by 24 percent in pre-market trading following the partnership announcement on Monday.
The agreement follows OpenAI announcing a “strategic partnership” with Nvidia last month that would enable the ChatGPT-maker to deploy at least 10 gigawatts of AI datacenters with Nvidia GPUs. The two companies have signed a letter of intent, but the deal isn’t finalized, and would also include Nvidia investing “up to $100 billion in OpenAI.”
OpenAI previously said that Nvidia will be a “preferred strategic compute and networking partner” for building new AI datacenters, with AMD comparatively described as a “core strategic compute partner” in today’s announcement. AMD’s deal gives OpenAI the option to receive up to 160 million AMD shares, a roughly ten percent stake in the company, at a cent per share, “as specific milestones are achieved.”
“This partnership is a major step in building the compute capacity needed to realize AI’s full potential,” said OpenAI CEO Sam Altman. “AMD’s leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster.”
The agreements with AMD and Nvidia follow the exclusive partnership between OpenAI and Microsoft being adjusted in January, allowing OpenAI to make deals with other cloud providers for compute power. OpenAI and Microsoft are now on the verge of a new partnership, announcing a “non-binding memorandum of understanding” in September that could clear the way for OpenAI to eventually go public.
“We are thrilled to partner with OpenAI to deliver AI compute at massive scale,” AMD CEO Lisa Su said in the deal announcement. “This partnership brings the best of AMD and OpenAI together to create a true win-win enabling the world’s most ambitious AI buildout and advancing the entire AI ecosystem.”
