OpenAI signs massive GPU deal with AMD, gains option to buy shares in rival to Nvidia
The agreement gives OpenAI access to hundreds of thousands of AMD GPUs and the option to buy up to 10% of the chipmaker.
OpenAI has signed a landmark multi-year deal with Advanced Micro Devices (AMD) to supply the chips powering its next generation of artificial intelligence infrastructure, a move that positions AMD as a serious challenger to Nvidia’s long-dominant hold on the AI hardware market.
The agreement, valued in the tens of billions of dollars annually, marks one of the largest technology supply deals in history. It gives OpenAI the option to purchase up to 10% of AMD through a warrant structure that vests as performance milestones are met.
Under the terms, AMD will deliver hundreds of thousands of AI processors, equivalent to six gigawatts of computing power, over several years beginning in the second half of 2026. The first phase includes a one-gigawatt buildout based on AMD’s forthcoming Instinct MI450 GPUs.
The deal represents a deepening of a collaboration that began years ago when OpenAI contributed feedback on earlier generations of AMD chips. But its scale and structure now signal a shift in the balance of power across the AI supply chain.
For AMD, the partnership offers both validation and volume at a time when demand for AI compute is outpacing global chip supply. “We view this deal as transformative, not just for AMD but for the dynamics of the industry,” said Forrest Norrod, AMD’s executive vice president, in comments to Reuters.
AMD has long competed with Nvidia in high-performance computing but has struggled to match the software ecosystems that make Nvidia’s CUDA platform the default for AI workloads. OpenAI’s endorsement now gives AMD a critical foothold among the world’s most influential AI developers and could accelerate the adoption of its Instinct GPU line.
For OpenAI, the deal diversifies its supply chain and mitigates dependence on Nvidia, whose chips remain in chronic shortage. The partnership also allows OpenAI to shape the design of future AMD processors more closely aligned with the demands of generative AI models, while preserving flexibility to work with other suppliers and to continue developing its own silicon.
Analysts estimate AMD could earn more than $100 billion in new revenue over four years from OpenAI and related customers if the deal’s ripple effects hold. The company’s shares jumped more than 25% in premarket trading following the announcement.
The partnership follows OpenAI’s September agreement with Nvidia, which included an investment of up to $100 billion and the deployment of at least 10 gigawatts of Nvidia systems. The new arrangement with AMD appears designed to complement, not replace, those plans, ensuring OpenAI access to multiple sources of compute power as it scales its global AI infrastructure.
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OpenAI CEO Sam Altman said the collaboration would “help build enough AI infrastructure to meet our needs,” underscoring the company’s appetite for energy-intensive systems capable of training and running increasingly complex models.
As part of the agreement, AMD granted OpenAI a warrant to buy up to 160 million AMD shares at $0.01 each, vesting over time as chips are delivered and AMD’s stock price meets set thresholds, up to $600 a share. The equity component ties OpenAI’s success directly to AMD’s market performance, an unusual move for a supplier agreement, but one that reflects the strategic interdependence between chipmakers and AI developers.
AMD is currently valued at about $267 billion, while OpenAI’s valuation has climbed to roughly $500 billion following recent internal restructuring into a for-profit entity alongside its main partner, Microsoft.
