OpenAI/AMD GPU deal

Extracted Attributes

• Deal Type

  Strategic partnership, GPU supply deal

• Deal Duration

  Multi-year, multi-generational

• Key Components

  AMD Instinct MI450 series GPUs, future generations of AMD chips, High-bandwidth memory (HBM)

• Estimated Value

  Billion-dollar partnership

• OpenAI Warrants

  160 million AMD shares

• Parties Involved

  OpenAI, AMD

• Total GPU Commitment

  6 gigawatts (GW) of AMD Instinct GPUs

• Constraints Addressed

  Energy demands, HBM supply chain bottlenecks

• Initial GPU Deployment

  1 gigawatt (GW) of AMD Instinct MI450 series GPUs

• Strategic Goal for AMD

  Challenge Nvidia's market dominance in AI GPUs

• Strategic Goal for OpenAI

  Secure compute capacity for AI infrastructure expansion

• Potential AMD Revenue Impact

  Tens of billions in incremental annual revenue from 2027 onward

• Potential OpenAI Ownership in AMD

  Approximately 10% (if full warrants exercised)

Timeline

• AMD and OpenAI officially announced a 6 gigawatt strategic partnership to power OpenAI’s next-generation AI infrastructure. (Source: web_search_results)

  2025-10-06

• The first 1 gigawatt deployment of AMD Instinct MI450 series GPUs for OpenAI is set to begin in the second half of 2026. (Source: web_search_results)

  2026-07-01

• The deal is expected to start adding tens of billions in incremental annual revenue for AMD from 2027 onward. (Source: web_search_results)

  2027-01-01

AMD

Advanced Micro Devices, Inc. (AMD) is an American multinational corporation and technology company headquartered in Santa Clara, California, with significant operations in Austin, Texas. AMD is a hardware and fabless company that designs and develops central processing units (CPUs), graphics processing units (GPUs), field-programmable gate arrays (FPGAs), system-on-chip (SoC), and high-performance computer solutions. AMD serves a wide range of business and consumer markets, including gaming, data centers, artificial intelligence (AI), and embedded systems. AMD's main products include microprocessors, motherboard chipsets, embedded processors, and graphics processors for servers, workstations, personal computers, and embedded system applications. The company has also expanded into new markets, such as the data center, gaming, and high-performance computing markets. AMD's processors are used in a wide range of computing devices, including personal computers, servers, laptops, and gaming consoles. While it initially manufactured its own processors, the company later outsourced its manufacturing, after GlobalFoundries was spun off in 2009. Through its Xilinx acquisition in 2022, AMD offers field-programmable gate array (FPGA) products. AMD was founded in 1969 by Jerry Sanders and a group of other technology professionals. The company's early products were primarily memory chips and other components for computers. In 1975, AMD entered the microprocessor market, competing with Intel, its primary rival in the industry. In the early 2000s, it experienced significant growth and success, thanks in part to its strong position in the PC market and the success of its Athlon and Opteron processors. However, the company faced challenges in the late 2000s and early 2010s, as it struggled to keep up with Intel in the race to produce faster and more powerful processors. In the late 2010s, AMD regained market share by pursuing a penetration pricing strategy and building on the success of its Ryzen processors, which were considerably more competitive with Intel microprocessors in terms of performance whilst offering attractive pricing. In 2022, AMD surpassed Intel by market capitalization for the first time.

Web Search Results

• Why A Bad Deal Makes AMD A Strong Buy

  AMD secures a landmark multi-year GPU supply deal with OpenAI, potentially adding tens of billions in incremental annual revenue from 2027 onward. The deal includes 160 million warrants for OpenAI, complicating the true economics but providing strong incentives for OpenAI to adopt AMD's products. Risks remain around OpenAI's ability to fund such large commitments, but the structure mitigates some risk and signals AMD's rising relevance in AI compute. [...] Advanced Micro Devices, Inc. (NASDAQ:AMD) recently announced a major commitment by OpenAI to buy a truckload of its Instinct GPUs. The economics of the deal are somewhat unclear as of now. I’ll work through This article was written by Bram de Haas 20.11KFollowers

• OpenAI and AMD reveal billion-dollar partnership

  OpenAI has signed a major deal with AMD in an effort to continue its expansion of AI infrastructure. The billion-dollar, multi-year agreement will have AMD being responsible for deploying 6 GW of its Instinct GPUs, with the first gigawatt coming from AMD Instinct MI450 series GPUs in the second half of 2026. Under the deal, OpenAI will also get access to future generations of AMD’s chips, as well as better software-hardware optimization in the future. ## OpenAI will use AMD for more compute [...] Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! “This agreement creates significant strategic alignment and shareholder value for both AMD and OpenAI and is expected to be highly accretive to AMD's non-GAAP earnings-per-share,” AMD CFO Jean Hu noted. OpenAI CEO Sam Altman described the deal as a “major step in building the compute capacity needed to realize AI’s full potential.” [...] Skip to main content Don't miss these # OpenAI and AMD reveal billion-dollar partnership - Sam Altman says deal will "bring the benefits of advanced AI to everyone faster" News By Craig Hale published Deal will also see OpenAI use thousands of AMD chips (Image credit: OpenAI) AMD and OpenAI sign a multi-year deal for 6 GW of GPUs OpenAI will also get up to 160 million shares ($32.5 billion) in AMD AMD shares surged 37% following the announcement

• AMD and OpenAI announce strategic partnership to deploy ...

  SANTA CLARA, Calif.—October 6, 2025—AMD⁠(opens in a new window) (NASDAQ: AMD) and OpenAI today announced a 6 gigawatt agreement to power OpenAI’s next-generation AI infrastructure across multiple generations of AMD Instinct GPUs. The first 1 gigawatt deployment of AMD Instinct MI450 GPUs is set to begin in the second half of 2026. [...] Under this definitive agreement, OpenAI will work with AMD as a core strategic compute partner to drive large-scale deployments of AMD technology starting with the AMD Instinct MI450 series and rack-scale AI solutions, and extending to future generations. By sharing technical expertise to optimize their product roadmaps, AMD and OpenAI are deepening their multi-generational hardware and software collaboration that began with the MI300X and continued with the MI350X series. This partnership [...] About Us Our Charter Careers Brand Guidelines News Log in OpenAI October 6, 2025 Company AMD and OpenAI announce strategic partnership to deploy 6 gigawatts of AMD GPUs Image 1: OpenAI + AMD Share News OpenAI to deploy 6 gigawatts of AMD GPUs based on a multi-year, multi-generation agreement Initial 1 gigawatt OpenAI deployment of AMD Instinct™ MI450 Series GPUs starting in 2H 2026

• AMD and OpenAI Announce Strategic Partnership to Deploy 6 ...

  SANTA CLARA, Calif., Oct. 06, 2025 (GLOBE NEWSWIRE) -- AMD (NASDAQ: AMD) and OpenAI today announced a 6 gigawatt agreement to power OpenAI’s next-generation AI infrastructure across multiple generations of AMD Instinct GPUs. The first 1 gigawatt deployment of AMD Instinct MI450 GPUs is set to begin in the second half of 2026. [...] Under this definitive agreement, OpenAI will work with AMD as a core strategic compute partner to drive large-scale deployments of AMD technology starting with the AMD Instinct MI450 series and rack-scale AI solutions and extending to future generations. By sharing technical expertise to optimize their product roadmaps, AMD and OpenAI are deepening their multi-generational hardware and software collaboration that began with the MI300X and continued with the MI350X series. This partnership

• Nvidia's Huang surprised AMD offered 10% of company to OpenAI

  OpenAI and AMD reached a deal on Monday, with OpenAI committing to purchase 6 gigawatts worth of chips over multiple years, including its forthcoming MI450 series. As part of the agreement, OpenAI will receive warrants for up to 160 million AMD shares, with vesting milestones based on deployment volume and AMD’s share price. If OpenAI exercises the full warrant, the company could acquire roughly 10% ownership in AMD.