AMD has announced a landmark multi-year chip supply deal with OpenAI that could bring in tens of billions of dollars, strengthening its foothold in the booming AI hardware market.
Under the agreement, AMD will supply OpenAI with 6 gigawatts of compute capacity, equivalent to the energy used by about 4.5 million homes, across several generations of its Instinct GPUs, starting with the upcoming Instinct MI450 series. The first gigawatt of capacity is expected to be delivered in the second half of 2026 when the MI450 chips are deployed.
AMD says the new GPUs will outperform Nvidia’s upcoming Rubin CPX chips, with hardware and software enhancements developed in collaboration with OpenAI. The company’s existing MI355X and MI300X GPUs, already used by OpenAI for some inference workloads, are praised for their high memory capacity and bandwidth, both critical for large language models.
As part of the deal, OpenAI has the option to purchase up to 160 million shares of AMD stock, equivalent to a 10% ownership stake. The first tranche will vest upon delivery of the initial 1 gigawatt of compute, with additional tranches tied to subsequent deployments and AMD’s stock price milestones. The final tranche will vest when AMD shares reach $600.
Following the announcement, AMD’s stock surged nearly 35%, rising from $164.67 on Friday to $222.24 on Monday.
AMD CEO Dr. Lisa Su called the partnership “a true win-win,” saying it combines “the best of AMD and OpenAI to deliver AI compute at massive scale and advance the entire AI ecosystem.”
OpenAI CEO Sam Altman added that the collaboration marks “a major step in building the compute capacity to realize AI’s full potential.”
The deal comes as OpenAI aggressively expands its chip partnerships to support its Stargate initiative, a massive infrastructure project aiming to deliver 7 gigawatts of compute power.
In recent months, OpenAI has signed several high-value agreements:
- Nvidia committed to invest up to $100 billion and supply 10 gigawatts of compute.
- Broadcom entered a $10 billion partnership to co-develop custom AI chips.
- Samsung Electronics and SK Hynix agreed to supply DRAM memory and assist with building data centers in South Korea.
With these moves, OpenAI is positioning itself as a central player in the global AI hardware race, and AMD’s latest partnership may prove to be one of its most transformative yet.
