Economy

OpenAI looks beyond Nvidia, inks billion-dollar AI chip deal with AMD

OpenAI, AMD
Photo: Reuters/Dado Ruvic

Advanced Micro Devices Inc. has secured a landmark deal with OpenAI to supply large-scale AI computing infrastructure, positioning AMD as a significant competitor in the highly lucrative artificial intelligence hardware market. The chipmaker states that this agreement could generate tens of billions of dollars in revenue, according to a Bloomberg report.

OpenAI will use up to 6 gigawatts of AMD graphics processing units (GPUs) over several years. AMD granted OpenAI warrants for up to 160 million shares, which will vest as milestones tied to capacity expansions and stock price growth are met.

The initial phase begins when OpenAI brings the first gigawatt of AMD-powered capacity online in the second half of next year, using Instinct MI450 chips. More capacity and warrant vesting will follow.

The partnership expands OpenAI’s AI infrastructure and highlights industry demand for energy-intensive AI systems.

Using AMD GPUs offers OpenAI an alternative to Nvidia hardware. Nvidia has also announced plans to invest heavily in OpenAI infrastructure.

The agreement secures AMD’s presence among major AI developers despite Nvidia’s market dominance.