OpenAI Secures AMD Deal for Up to 10% of Company, Boosting AI Infrastructure
OpenAI has secured a significant deal with AMD, acquiring a warrant for up to 160 million shares, potentially up to 10% of the company. This comes alongside a long-term supply agreement for AMD's Instinct chips, boosting OpenAI's AI infrastructure. The news sent AMD's stock price soaring by over 23% in after-hours trading.
The agreement between OpenAI and AMD spans multiple generations of Instinct chips, including up to six gigawatts of computing power. The first 1-gigawatt cluster based on the new Instinct MI450 series is expected to go live in the second half of 2026. Despite this partnership, OpenAI plans to continue increasing purchases from Nvidia.
OpenAI's strategy involves partnerships with various tech giants to secure its growing demand for computing resources. Besides AMD and Nvidia, OpenAI is collaborating with Oracle, SoftBank, CoreWeave, and Databricks to provide large-scale AI infrastructure and cloud compute capacity. The company continues to work with Nvidia and Broadcom on its own chips and maintains cooperation with Microsoft.
The OpenAI-AMD partnership covers a multi-generational collaboration encompassing Instinct GPUs and 'rack-scale AI solutions'. OpenAI's shares will vest based on technical milestones and stock price targets. With this deal, OpenAI strengthens its position in the AI landscape, ensuring a steady supply of advanced hardware for its growing AI needs.
