OpenAI Partners with AMD to Boost AI Infrastructure

OpenAI and Advanced Micro Devices (AMD) have announced a strategic partnership to enhance OpenAI's artificial intelligence (AI) infrastructure. The multi-year agreement involves OpenAI deploying up to 6 gigawatts of AMD's Instinct GPUs, beginning with a 1-gigawatt deployment of the MI450 series in the second half of 2026.

This collaboration is expected to generate tens of billions of dollars in revenue for AMD and significantly bolster OpenAI's computing capacity. As part of the deal, AMD has issued OpenAI a warrant for up to 160 million shares of AMD common stock, approximately 10% of the company, contingent upon achieving specific milestones, including deployment targets and stock price thresholds.

"We are thrilled to partner with OpenAI to deliver AI compute at massive scale," said Dr. Lisa Su, chair and CEO of AMD. "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."

OpenAI's CEO, Sam Altman, emphasized the importance of this partnership in building the compute capacity needed to realize AI's full potential. "AMD's leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster," Altman stated.

The partnership positions AMD as a core strategic compute partner for OpenAI, challenging NVIDIA's dominance in the AI GPU market. Notably, NVIDIA and OpenAI had previously announced a separate agreement involving a $100 billion investment to deliver at least 10 gigawatts of AI compute, with deployments also set to begin in the second half of 2026.

This collaboration underscores the escalating demand for AI infrastructure and the substantial investments required to support AI advancements. OpenAI's CEO, Sam Altman, has been at the forefront of these investments, with the company planning to draw on 20 gigawatts of computing power—comparable to the output of 20 nuclear reactors. This raises concerns about energy consumption and sustainability, especially amid existing electricity shortages.

The partnership marks a significant milestone in the AI industry, highlighting the collaborative efforts required to advance AI capabilities and the complex interplay between technological innovation, market competition, and societal considerations.