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Home » AMD and OpenAI Strike Multi-Billion-Dollar AI Chip Partnership

AMD and OpenAI Strike Multi-Billion-Dollar AI Chip Partnership

Tarun Khanna by Tarun Khanna
October 6, 2025
in Artificial Intelligence
Reading Time: 2 mins read
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AMD and OpenAI Strike Multi-Billion-Dollar AI Chip Partnership

Photo Credit: https://opendatascience.com/

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Advanced Micro Devices (AMD) surged more than 35% in premarket trading on Monday after announcing a sweeping partnership with OpenAI that would reshape the AI hardware landscape. The agreement grants OpenAI the option to gain up to a 10% stake in AMD whilst committing to deploy as much as 6 gigawatts of AMD’s Instinct GPUs over numerous years.

A Massive Rollout starts in 2026

The rollout will start with an preliminary 1-gigawatt deployment in the second half of of 2026, observed by additional levels tied to overall performance and manufacturing milestones. AMD has issued OpenAI a warrant for up to 160 million shares, with vesting dependent on each deployment quantity and AMD’s share price performance.

If OpenAI exercises the full warrant, it would secure 10% ownership stake in the chipmaker based on recent-shares outstanding.

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OpenAI declined to reveal the total dollar value of the deal but confirmed it was worth “billions.” CEO Sam Altman emphasized AMD’s role in increasing AI development, pronouncing, “AMD’s leadership in high-overall performance chips will allow us to boost up progress and bring the advantages of advanced AI to everyone quicker.”

Positioning AMD as a Core AI Partner

This partnership represents one in of the largest GPU supply agreements in AI history and positions AMD as a first-rate strategic supplier to OpenAI. For AMD, it’s a validation of its Instinct GPU roadmap after years of trailing Nvidia in the AI accelerator market. “It’s a true win-win allowing the world’s most ambitious AI buildout and advancing the complete AI ecosystem,” stated AMD CEO Lisa Su.

The deal could also assist alleviate industrywide stress on GPU supply chains and decrease OpenAI’s dependency on Nvidia, which stays its primary chip supplier.

A Shifting AI Supply Chain Landscape

The declaration follows OpenAI’s recent $100 billion supply-and-equilty agreement with Nvidia, which reserved a 10-gigawatt capacity for OpenAI’s infrastructure. With AMD’s addition, OpenAI has now committed to about $1 trillion in AI infrastructure spending over the past two weeks. The corporation is also in discussions with Broadcom to co-develop custom AI chips for future models.

This marks a pivotal moment in the AI chip ecosystem, wherein capital, equity, and compute are increasingly interlinked amongst a small circle of corporations. Nvidia supplies the capital and chips, Oracle supports site construction, AMD and Broadcom serve as hardware supplier, and OpenAI anchors requirement.

Expanding OpenAI’s Infrastructure Ambitions

OpenAI’s infrastructure growth—dubbed “Project Stargate”—includes main data center builds in Texas, New Mexico, Ohio, and the Midwest. The new centers will comprise a mix of suppliers, diversifying OpenAI’s hardware base because it scales to guide next-generation AI systems.

With AMD now onboard, OpenAI’s quickly infrastructure push alerts a broader industry shift: one wherein AI’s future relies upon as plenty on chip partnerships and supply chain resilience as on model innovation itself.

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Tarun Khanna

Tarun Khanna

Founder DeepTech Bytes - Data Scientist | Author | IT Consultant
Tarun Khanna is a versatile and accomplished Data Scientist, with expertise in IT Consultancy as well as Specialization in Software Development and Digital Marketing Solutions.

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