AMD, OpenAI sign 6-gigawatt chip deal to power next-gen AI infrastructure

Semiconductor maker Advanced Micro Devices (AMD) and OpenAI on Monday announced a partnership to deliver up to 6 gigawatts (GW) of computing power using AMD’s latest Instinct GPUs to support ChatGPT creator’s next-generation artificial intelligence infrastructure.

The first 1GW deployment of AMD’s new Instinct MI450 GPUs is expected to begin in the second half of 2026, the companies said in a joint statement.

Under the multi-year agreement, OpenAI will designate AMD as a core strategic compute partner, collaborating on large-scale deployments and co-developing future generations of hardware and software optimised for AI workloads.

The companies said the partnership builds on their earlier collaboration involving AMD’s MI300X and MI350X GPU series.

As part of the deal, AMD has issued OpenAI a warrant for up to 160 million AMD shares, which will vest in stages as OpenAI meets specific deployment and commercial milestones, including scaling GPU use from 1GW to 6GW and AMD reaching certain share-price targets.

“This partnership brings the best of AMD and OpenAI together to create a true win-win enabling the world’s most ambitious AI buildout and advancing the entire AI ecosystem,” said AMD Chief Executive Lisa Su.

OpenAI CEO Sam Altman said the agreement marks “a major step in building the compute capacity needed to realise AI’s full potential.”

AMD expects the partnership to generate tens of billions of dollars in revenue, Chief Financial Officer Jean Hu said, adding that the deal would be “highly accretive” to its earnings per share.

Shares of AMD jumped nearly 24% on Monday following the announcement, while Nvidia, which dominates the AI chip market, slipped about 1%.