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OpenAI is buying 6 gigawatts worth of AMD’s new MI450 processors, chips designed to run advanced AI models like ChatGPT faster and more efficiently. In return, OpenAI could earn up to a 10% stake in AMD, worth billions, if it hits certain performance milestones. It’s one of the largest AI infrastructure deals to date and it directly targets Nvidia’s dominance in the AI chip world.
The deal will allow OpenAI to begin using 1 gigawatt of MI450 chips in the second half of 2026.
For AMD, this is huge validation. AMD has long been known for gaming and PC chips, but this partnership could catapult it into the top tier of AI computing. AMD CEO Lisa Su called it as a “true win-win,” and investors clearly agreed — AMD’s stock soared 23.7% after the announcement.
Under the terms, OpenAI will receive warrants to buy as much as 10% of AMD’s shares, roughly 160 million, at a nominal price of one cent per share, provided it meets key deployment milestones and AMD’s stock continues to rise.
The arrangement could bring AMD tens of billions of dollars in revenue by 2027. “The entire industry’s got to come together,” Altman said. “You’ll see this on chips, on data centers, and all the way down the supply chain.” AMD CFO Jean Hu added that the deal will be “highly accretive” to earnings per share and drive long-term shareholder value.
For OpenAI, this deal is about survival and growth. Sam Altman said demand for AI compute is growing faster than the industry can supply, adding that “it’s hard to overstate how difficult it’s become to get enough computing power.” With millions using ChatGPT and newer AI models on the horizon, OpenAI needs a steady, affordable, and powerful supply of chips and AMD is stepping in to deliver that.
Nvidia currently controls more than 70% of the market for AI chips, but faces mounting competition from AMD, Google, Amazon, and OpenAI’s in-house chip efforts.
OpenAI is signing huge partnerships across the tech industry. Altman is essentially building a web of alliances to ensure that OpenAI never runs out of the fuel it needs: computing power.
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