Historic Partnership Announced

OpenAI and AMD (NASDAQ: AMD) have unveiled a multibillion-dollar, multiyear partnership aimed at scaling global AI data centers. The deal positions AMD as a critical supplier of compute capacity for OpenAI’s next phase of growth, while providing OpenAI with significant equity incentives.

Key Deal Terms

OpenAI will purchase 6 gigawatts of AMD AI chips, beginning with the MI450 in 2026.
AMD estimates each “per gigawatt” of capacity is worth tens of billions of dollars, suggesting the deal could exceed $60 billion.
OpenAI will receive warrants for up to 160M AMD shares (~10% of AMD’s equity) at $0.01/share, contingent on meeting deployment milestones.
Warrants are exercisable only if AMD’s stock price rises, aligning incentives for long-term growth.

Revenue and Market Impact

AMD CEO Lisa Su told WSJ the deal will generate tens of billions of dollars in revenue for AMD over the next five years.
The first 1 gigawatt deployment of MI450 chips is expected in H2 2026.
This partnership strengthens AMD’s position as a competitor to Nvidia (NVDA) in AI compute supply.

Strategic Context

The announcement follows Nvidia’s partnership with Intel, where the two companies will jointly develop x86 RTX SOCs and data center processors. Nvidia also received $5 billion in Intel stock under that arrangement.
OpenAI, meanwhile, continues to pursue multiple infrastructure deals — including a rumored $100B AI buildout with Nvidia — but has described the AMD partnership as “definitive”, with regulatory filings expected imminently.

Executive Comments

Sam Altman, CEO of OpenAI: “It’s hard to overstate how difficult it’s become… We want it super fast, but it takes some time. The industry’s got to come together and everybody’s going to do super well.”
Dr. Lisa Su, 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.”

Why It Matters for Investors

The deal significantly boosts AMD’s visibility in the AI chip arms race, directly challenging Nvidia’s dominance.
OpenAI secures long-term compute supply for inference workloads, a bottleneck as global AI adoption accelerates.
Analysts see the transaction as a transformative growth catalyst for AMD, with ripple effects across the broader semiconductor and AI infrastructure ecosystem.