AMD and OpenAI Strike Multi-Billion-Dollar AI Chip Partnership
Advanced Micro Devices (AMD) surged more than 35% in premarket trading on Monday after announcing a sweeping partnership with OpenAI that could reshape the AI hardware landscape. The agreement grants OpenAI the option to acquire up to a 10% stake in AMD while committing to deploy as much as 6 gigawatts of AMD’s Instinct GPUs over several years.
A Massive Rollout Begins in 2026
The rollout will begin with an initial 1-gigawatt deployment in the second half of 2026, followed by additional phases tied to performance and production milestones. AMD has issued OpenAI a warrant for up to 160 million shares, with vesting dependent on both deployment volume and AMD’s share price performance.
If OpenAI exercises the full warrant, it would secure roughly a 10% ownership stake in the chipmaker based on current shares outstanding.
OpenAI declined to disclose the total dollar value of the deal but confirmed it was worth “billions.” CEO Sam Altman emphasized AMD’s role in accelerating AI development, saying, “AMD’s leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster.”
Positioning AMD as a Core AI Partner
This partnership represents one of the largest GPU supply agreements in AI history and positions AMD as a major strategic supplier to OpenAI. For AMD, it’s a validation of its Instinct GPU roadmap after years of trailing Nvidia in the AI accelerator market. “It’s a true win-win enabling the world’s most ambitious AI buildout and advancing the entire AI ecosystem,” said AMD CEO Lisa Su.
The deal could also help alleviate industrywide pressure on GPU supply chains and reduce OpenAI’s dependency on Nvidia, which remains its primary chip supplier.
A Shifting AI Supply Chain Landscape
The announcement follows OpenAI’s recent $100 billion supply-and-equity agreement with Nvidia, which reserved a 10-gigawatt capacity for OpenAI’s infrastructure. With AMD’s addition, OpenAI has now committed to approximately $1 trillion in AI infrastructure spending over the past two weeks. The company is also in discussions with Broadcom to co-develop custom AI chips for future models.
This marks a pivotal moment in the AI chip ecosystem, where capital, equity, and compute are increasingly interlinked among a small circle of companies. Nvidia supplies the capital and chips, Oracle supports site construction, AMD and Broadcom serve as hardware suppliers, and OpenAI anchors demand.
Expanding OpenAI’s Infrastructure Ambitions
OpenAI’s infrastructure expansion — dubbed “Project Stargate” — includes major data center builds in Texas, New Mexico, Ohio, and the Midwest. The new facilities will incorporate a mix of suppliers, diversifying OpenAI’s hardware base as it scales to support next-generation AI systems.
With AMD now onboard, OpenAI’s rapid infrastructure push signals a broader industry shift: one where AI’s future depends as much on chip partnerships and supply chain resilience as on model innovation itself.
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