OpenAI inks multibillion chip pact with AMD

OpenAI and chipmaker AMD have cemented a multibillion-dollar deal that will not only deliver massive AI computing capacity but also give OpenAI an option to acquire a significant stake in AMD.

The pact marks an essential strategic investment in future artificial intelligence infrastructure.

Under the agreement, AMD will supply OpenAI with AI graphics processing units (GPUs) totaling roughly six gigawatts over multiple years, beginning in the second half of 2026. To kick off the programme, OpenAI will deploy a one-gigawatt facility based on AMD’s upcoming MI450 architecture.

As part of the deal, AMD issued a warrant that enables OpenAI to purchase up to 160 million AMD shares at a token price, equivalent to approximately a 10% stake if fully exercised. 

AMD executives project that the deal will generate tens of billions of dollars in annual revenue, and they estimate that OpenAI and similar customers could drive over $100 billion in new revenue over the next four years.

For AMD, the agreement reflects growing confidence in its AI hardware and software stack. The stock jumped more than 30% on the news, adding roughly $80 billion to its market capitalization. AMD’s executive vice president Forrest Norrod called the deal “transformative… for the dynamics of the industry.”

For OpenAI, the pact helps diversify its chip supply beyond Nvidia, against which it already struck a separate $100 billion partnership. CEO Sam Altman has repeatedly emphasised that access to extreme compute—and not software—is the current bottleneck to scaling AI.

Financially, the timing of the deal raises questions: OpenAI is not yet profitable. In the first half of 2025, it reportedly generated around $4.3 billion in revenue but consumed $2.5 billion in cash for talent and innovation investments. The mechanisms by which it will fund the massive commitment to AMD are not yet public.