AMD Partners with OpenAI for 6 Gigawatts Deployment

By Tamara Parker • Monday, October 06 10:14 • Permanent Link

AMD and OpenAI have announced a significant strategic partnership to deploy 6 gigawatts of AMD GPUs. The initial deployment of 1 gigawatt of AMD Instinct™ MI450 series GPUs is set to begin in the second half of 2026.

Under the definitive agreement, OpenAI will work with AMD as a core strategic compute partner to drive large-scale deployments of AMD technology across multiple generations of AMD Instinct GPUs. This partnership aims to deepen their multi-generational hardware and software collaboration, beginning with the MI300X and continuing with the MI350X series.

As part of the agreement, AMD has issued OpenAI a warrant for up to 160 million shares of AMD common stock, structured to vest as specific milestones are achieved. The first tranche vests with the initial 1 gigawatt deployment, with additional tranches vesting as purchases scale up to 6 gigawatts.

Dr. Lisa Su, Chair and CEO of AMD, expressed excitement about the partnership, stating, "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."

Sam Altman, co-founder and CEO of OpenAI, emphasized the importance of the partnership in accelerating progress and bringing the benefits of advanced AI to everyone faster, stating, "AMD’s leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster."

Jean Hu, EVP, CFO, and Treasurer of AMD, highlighted the expected financial impact of the partnership, stating, "Our partnership with OpenAI is expected to deliver tens of billions of dollars in revenue for AMD while accelerating OpenAI’s AI infrastructure buildout."

This partnership is expected to drive significant strategic alignment and shareholder value for both AMD and OpenAI, with expectations of being highly accretive to AMD’s non-GAAP earnings-per-share.

The partnership aims to build the infrastructure to meet the world’s growing AI demands, combining innovation and execution to accelerate the future of high-performance and AI computing. As a result of these announcements, the company's shares have moved -2.98% on the market, and are now trading at a price of $164.67. If you want to know more, read the company's complete 8-K report here.

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