OpenAI Secures Multi-Year AI Chip Supply Deal with AMD
OpenAI has inked a multi-year deal with AMD, securing a significant supply of AI chips starting in late 2026. This agreement, announced on October 6, 2025, involves the deployment of hundreds of thousands of AMD's AI chips, equivalent to six gigawatts, over several years. OpenAI has the option to acquire up to ten percent of AMD's shares through a warrant issued as part of the deal.
The deal is expected to net AMD tens of billions of dollars in annual revenue and over $100 billion in new revenue over four years, not just from OpenAI but also from other customers. OpenAI, which has worked with AMD for years, providing inputs on older generations of AI chips, will build a one-gigawatt facility based on AMD's forthcoming MI450 series of chips beginning next year. AMD will recognize revenue from this deal starting then.
OpenAI's partnership with AMD does not affect its ongoing compute plans, including its collaboration with Microsoft. The two companies have signed a non-binding agreement to restructure OpenAI into a for-profit entity. OpenAI is also developing its own silicon for AI use, partnering with Broadcom, and plans to deploy a gigawatt of Nvidia's next-generation Vera Rubin chips in late 2026.
The deal between OpenAI and AMD is set to strengthen both companies' positions in the AI chip market. AMD stands to gain significant revenue, while OpenAI secures a steady supply of advanced AI chips for its growing computational needs. The agreement, however, does not alter OpenAI's existing partnerships or plans.
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