OpenAI Secures Massive GPU Deal with AMD, Diversifying Supply and Boosting AI Ambitions
OpenAI has sealed a substantial agreement with AMD, securing a multi-year, multi-generational supply of AMD Instinct GPUs. The deal, worth up to $90 billion USD, commences with a 1-gigawatt rollout of AMD's impending Instinct MI450 GPUs in late 2026, ramping up to 6 gigawatts across various generations.
The partnership is a significant move for OpenAI, broadening its chip procurement and mitigating reliance on a single vendor. It also stands as one of the largest GPU deployment pacts in AI history. If OpenAI exercises the full option, it could acquire roughly 10% of AMD, based on present shares outstanding. The agreement includes a warrant for up to 160 million shares of AMD common stock, vesting in installments tied to deployment milestones and AMD's share price.
The agreement transcends supply. AMD and OpenAI will share technical know-how to align their product roadmaps and collectively advance AI hardware and software. OpenAI President Greg Brockman told CNBC that the deal is crucial for scaling AI globally, as the company currently grapples with restricted compute capacity, hindering the launch of several features.
The agreement is anticipated to generate 'tens of billions of dollars in revenue for AMD' and be highly beneficial to its non-GAAP earnings per share. AMD's stock surged nearly 24% following the announcement, mirroring the market's excitement for this strategic alliance.
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