OpenAI Secures Major Deal with AMD for Computing Power and Equity
OpenAI has inked a significant deal with AMD, securing the option to acquire up to 160 million shares, potentially up to 10% of the company. This comes alongside a long-term supply agreement for AMD's Instinct AI chips, set to provide OpenAI with up to six gigawatts of computing power.
The agreement, tied to technical milestones and stock price targets, does not alter OpenAI's current compute strategy. It allows OpenAI to purchase shares based on specific achievements, such as AI deployment and stock price performance. AMD's stock price surged by over 23% in pre-market trading following the announcement.
The first phase of the partnership involves a 1-gigawatt cluster, based on the new Instinct MI450 series, scheduled to go online in the second half of 2026. The collaboration spans multiple generations of Instinct AI GPUs and 'rack-scale AI solutions'. Sam Altman, OpenAI's CEO, confirmed the company's strategy of relying on multiple hardware suppliers to meet its growing demand for computing resources. OpenAI continues to work with Nvidia and Broadcom on its own chips and maintains a close cooperation with Microsoft.
OpenAI's partnership with AMD secures a substantial AI computing power boost and potential equity in the company. This strategic move, alongside its existing collaborations, positions OpenAI to navigate the rapidly evolving AI landscape.
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