AMD and OpenAI Announce 6 Gigawatt GPU Strategic Partnership
Executive Summary
AMD and OpenAI have formed a multi-year, multi-generation strategic partnership for OpenAI to deploy 6 gigawatts of AMD Instinct GPUs for its next-generation AI infrastructure. The deal, expected to generate tens of billions of dollars in revenue for AMD, will begin with a 1 gigawatt deployment of AMD Instinct MI450 GPUs in the second half of 2026. To further align strategic interests, AMD has issued OpenAI a warrant for up to 160 million shares of its common stock, tied to purchase and performance milestones.
Key Takeaways
* Agreement Scale: OpenAI will deploy a total of 6 gigawatts of compute power using multiple generations of AMD Instinct GPUs.
* Initial Deployment: The first phase consists of a 1 gigawatt deployment of AMD Instinct MI450 Series GPUs, scheduled to begin in H2 2026.
* Financial Impact: The partnership is expected to deliver "tens of billions of dollars" in revenue for AMD and be highly accretive to its non-GAAP earnings-per-share.
* Equity Component: AMD has issued OpenAI a warrant for up to 160 million shares of AMD common stock, which vests as OpenAI meets purchase milestones and AMD achieves certain share-price targets.
* Deepened Collaboration: The companies will share technical expertise to optimize product roadmaps, extending a collaboration that began with the MI300X and MI350X series GPUs.
Strategic Importance
This landmark agreement establishes AMD as a core compute provider for a leading AI company, creating a significant competitor to Nvidia in the large-scale AI infrastructure market. For OpenAI, this partnership is critical for securing and diversifying its massive future compute supply chain.