AMD has entered into a five-year partnership with OpenAI to supply six gigawatts of processors for AI data centers. This collaboration aims to enhance OpenAI’s infrastructure to support the increasing computational requirements for AI applications, including ChatGPT. The initial phase of the agreement will involve the deployment of AMD Instinct MI450 GPUs, with one gigawatt expected to go live in the latter half of 2026, as per AMD’s official announcement.
Details regarding the financial aspects of the partnership remain undisclosed; however, AMD anticipates that the agreement could generate “tens of billions of dollars in revenue.” Following the announcement on Monday, AMD saw a 24 percent increase in its stock price during pre-market trading.
AMD’s CEO Lisa Su expressed enthusiasm about the partnership, stating that it combines the strengths of both companies to support ambitious AI development and advance the broader AI ecosystem. This partnership follows OpenAI’s recent announcement about a strategic deal with Nvidia, which could potentially involve the deployment of at least ten gigawatts of AI data centers equipped with Nvidia GPUs and may include Nvidia investing “up to $100 billion in OpenAI.”
Nvidia has been identified as OpenAI’s “preferred strategic compute and networking partner” for establishing new AI data centers, while AMD is described as a “core strategic compute partner” in this new agreement. The arrangement may also provide OpenAI the opportunity to acquire up to 160 million shares of AMD, which would represent around a ten percent stake in the company, at a nominal price contingent on achieving specific milestones.
OpenAI’s CEO Sam Altman highlighted that this collaboration marks a significant advancement towards building the necessary compute capacity to harness the full potential of AI, anticipating that AMD’s high-performance chips will facilitate quicker progress in delivering advanced AI benefits to a wider audience.
Source: https://www.theverge.com/news/792650/amd-openai-five-year-ai-chip-agreement