OpenAI taps AMD for massive AI chip deal aimed at boosting compute capacity

OpenAI has signed a multi-year deal with chipmaker AMD to deploy billion of dollars worth of AMD GPUs for building its next-generation AI infrastructure. Under the agreeement, OpenAI will deploy 6 gigawatts worth of AMD GPUs starting with the first 1 gigawatt deployment of AMD Instinct MI450 GPUs in the second half of 2026.

OpenAI CEO Sam Altman while reacting to the deal in a joint release said, “AMD’s leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster.”

AMD has also issued the ChatGPT maker with a warrant to buy 160 million shares of its stock, which is roughly 10% of the chipmaker’s share. The warrant is vest based on AMD achieving a certain share price target and OpenAI achieving technical and commercial milestones required to enable AMD deployments at scale. The first tranche vests with the initial 1 gigawatt deployment in 2026.