OpenAI and AMD announce multibillion-dollar partnership — AMD to supply 6 gigawatts in chips, OpenAI could get up to 10% of AMD shares in return

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A landmark deal.

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(Image credit: Getty Images / NurPhoto)

OpenAI and AMD have announced a multibillion-dollar partnership that will see the companies collaborate on AI data centers powered by AMD processors. OpenAI has committed to purchasing 6 gigawatts of AMD chips, starting with the MI450 next year. That will be done either by purchasing the chips directly from AMD or through cloud computing partners. AMD CEO Lisa Su told the WSJ that the deal would generate tens of billions of dollars in revenue for AMD over the next five years.

The two companies are not disclosing the exact financial details of the deals. However, AMD emphasized that each "per gigawatt" of capacity is worth tens of billions of dollars, so it's possible the deal is worth upwards of $60 billion.

OpenAI will use AMD's chip for inference in order to cope with skyrocketing demand. "It’s hard to overstate how difficult it’s become... We want it super fast, but it takes some time." OpenAI's Sam Altman said to WSJ.

"We are thrilled to partner with OpenAI to deliver AI compute at massive scale," said Dr. Lisa Su, chair and CEO, AMD. "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."

The first deployment will be 1 gigawatt worth of MI450 chips, scheduled for the second half of 2026. Altman said the AI buildout has reached a phase "where the entire industry’s got to come together and everybody’s going to do super well," not only on chips and data centers, but also further down the supply chain too.

Stephen Warwick
Stephen Warwick
News Editor

Stephen is Tom's Hardware's News Editor with almost a decade of industry experience covering technology, having worked at TechRadar, iMore, and even Apple over the years. He has covered the world of consumer tech from nearly every angle, including supply chain rumors, patents, and litigation, and more. When he's not at work, he loves reading about history and playing video games.

8 Comments Comment from the forums
  • A Stoner
    Once the bubble bursts, what can these AI servers be converted to doing efficiently and effectively? I sure hope there is something they can be repurposed to.
    Reply
  • TerryLaze
    Now it makes much more sense why AMD seeks to manufacture at intel FABs.

    A Stoner said:
    Once the bubble bursts, what can these AI servers be converted to doing efficiently and effectively? I sure hope there is something they can be repurposed to.
    While AI might be overhyped now it's not a bubble that will burst, AI is here to stay for good (or bad)
    Admin said:
    AMD and OpenAI have announced a multibillion-dollar partnership to collaborate on AI data centers powered by AMD chips.

    OpenAI and AMD announce multibillion-dollar partnership — AMD to supply 6 gigawatts in chips, OpenAI could get up to 10% of AMD shares in return : Read more
    Nvidia also received $5 billion in Intel stock as part of the deal.
    In the link you linked:
    Additionally, Nvidia will buy $5 billion in Intel common stock at $23.28 per share
    Which one is it?
    Reply
  • jp7189
    A Stoner said:
    Once the bubble bursts, what can these AI servers be converted to doing efficiently and effectively? I sure hope there is something they can be repurposed to.
    What we're seeing now is the race to capture the market. There will be winners and losers, but those who want a shot have to spend big.
    Reply
  • Roland Of Gilead
    And so, the AI war begins!

    "At some point early in the 21st century, all of mankind was united in celebration. We marveled at our own magnificence as we gave birth to AI. A singular consciousness that spawned an entire race of Machines..." The Matrix :ROFLMAO:
    Reply
  • SomeoneElse23
    AI is scary. For localized "we feed you the data, and you help us make decisions based on it", it's extremely useful.

    For things like ChatGPT which are based on the content of the internet... it's a crap shoot. (Because half of what's on the internet is wrong or outdated.)
    Reply
  • rluker5
    10 % of the AMD to be sold at 1c per share : https://www.msn.com/en-us/money/companies/amd-pays-a-high-price-for-blockbuster-openai-deal/ar-AA1O0P0i
    That's 34 billion at todays prices so a smaller discount than Nvidia gave if both companies are selling GPUs at the same $/watt.

    But is still nothing more than discounted sales. At least it is helping AMD's stock price quite a bit for now.
    Reply
  • charles_75
    A Stoner said:
    Once the bubble bursts, what can these AI servers be converted to doing efficiently and effectively? I sure hope there is something they can be repurposed to.
    Ironic part , The bubble should bursts years ago, if not for china .
    Reply
  • unsnap
    I thought GPU's sold by the piece not the watt. I thought lower power was a goal. If they are being paid by the watt, then power consumption will go up - which will be bad for citizens. Why would a company offer free stock to a purchaser to buy their product (come on 1cent is basically free) that would be like a lender offering gifts to a realtor to point their buyers to them for loans. Which was illegal last time I checked- Seems very fishy and borderline fraudulent- a backdoor kickback of sorts. Is Open AI making money on their own business model, or on the kickback from their supplier? DOJ and SEC need to keep a close eye on this one.
    Reply