AMD Scores $100B+ Deal with OpenAI for Next-Gen AI Processors
AMD has secured a significant deal with OpenAI, potentially opening up a new revenue stream worth tens of billions of dollars annually. The partnership involves the supply of AMD's next-generation processors for OpenAI's large-scale AI data centres.
OpenAI has agreed to purchase six gigawatts of AMD's processors, starting with the MI450 chip in 2026. This deal comes on the heels of OpenAI's recent partnership with Nvidia, which committed to 10 gigawatts of Nvidia-powered data centres. The financial implications are substantial, with each gigawatt of computing capacity typically costing tens of billions of dollars to bring online.
AMD's CEO, Lisa Su, expects this partnership to generate 'tens of billions of dollars in AI revenue annually' for AMD. The announcement has already driven AMD's shares up by 33%, reaching $219.10 (£162.68) in early trading. OpenAI's CEO, Sam Altman, views this partnership as a major step in building the compute capacity needed for AI's full potential. The chips will be acquired either directly or through OpenAI's cloud partners, including Microsoft and Oracle.
The AMD-OpenAI partnership is a significant breakthrough for AMD, potentially opening the door for other customers and generating over $100bn in revenue. This deal, along with OpenAI's recent partnership with Nvidia, underscores the growing demand for AI processing power and the opportunities it presents for AMD.
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