In a landmark agreement poised to reshape the artificial intelligence (AI) landscape, Advanced Micro Devices (AMD) has entered into a multi-year partnership with OpenAI. This collaboration is set to provide OpenAI with 6 gigawatts (GW) of computing power through AMD’s cutting-edge Instinct GPUs, marking a significant stride in AI infrastructure development.
Details of the Agreement
Under the terms of the deal, AMD will supply OpenAI with 6 GW of compute capacity, a volume sufficient to power approximately 4.5 million homes. This capacity will be delivered across multiple generations of AMD’s Instinct GPUs, beginning with the Instinct MI450 series. The initial 1 GW of capacity is scheduled for deployment in the latter half of 2026, coinciding with the launch of the MI450 GPU.
AMD asserts that the MI450 series will surpass the performance of comparable offerings from competitors, such as Nvidia’s Rubin CPX, through a combination of hardware and software enhancements. Notably, many of these improvements will be developed in collaboration with OpenAI, ensuring that the GPUs are finely tuned to meet the specific demands of AI workloads.
Financial Implications and Stock Options
As part of this strategic partnership, AMD has granted OpenAI the option to purchase up to 160 million shares of AMD stock, representing a 10% ownership stake. The vesting of these shares is tied to specific milestones: the first tranche will vest with the initial 1 GW deployment, with subsequent tranches vesting as OpenAI scales up to the full 6 GW capacity. Additionally, the final tranche is contingent upon AMD’s stock price reaching $600 per share. For context, AMD’s shares closed at $164.67 prior to the announcement but surged nearly 35% to $222.24 following the news of the deal.
Strategic Context and Industry Impact
This agreement comes at a time when OpenAI is aggressively expanding its AI infrastructure. The organization is actively securing multiple chip partnerships to support its ambitious projects, including the development of five new Stargate data centers with a planned capacity of 7 GW. These initiatives underscore OpenAI’s commitment to building a robust and scalable AI ecosystem.
Dr. Lisa Su, Chair and CEO of AMD, expressed enthusiasm about the partnership, stating, We are thrilled to partner with OpenAI to deliver AI compute at massive scale. 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, echoed this sentiment, highlighting the significance of the collaboration in realizing AI’s full potential. He noted that the partnership represents a major step in building the compute capacity necessary for advancing AI technologies.
Broader Industry Trends
The AMD-OpenAI partnership is indicative of a broader trend in the tech industry, where companies are forming strategic alliances to bolster their AI capabilities. For instance, in March 2025, SoftBank announced plans to invest up to $25 billion in OpenAI, aiming to become its largest single backer. This move is part of a larger strategy that could see SoftBank investing over $40 billion in AI initiatives with OpenAI.
Similarly, in August 2025, OpenAI reportedly raised $8.3 billion at a $300 billion valuation, reflecting the immense investor confidence in the company’s vision and capabilities. These developments highlight the escalating investments and collaborations aimed at advancing AI infrastructure and applications.
Conclusion
The partnership between AMD and OpenAI represents a significant milestone in the evolution of AI computing. By combining AMD’s hardware expertise with OpenAI’s pioneering AI research, this collaboration is set to accelerate the development and deployment of advanced AI systems. As the industry continues to witness rapid advancements, such strategic alliances will play a crucial role in shaping the future of artificial intelligence.
