Semiconductor giant AMD will supply its high-performance Instinct MI450 chips to AI leader OpenAI for building next-generation AI infrastructure, with OpenAI also gaining the option to acquire up to a 10% stake in AMD. This multi-gigawatt deal aims to significantly boost OpenAI's computing power and diversify its chip supply.
Semiconductor manufacturer AMD has announced a major partnership with artificial intelligence company OpenAI, agreeing to supply its advanced Instinct MI450 graphics chips for OpenAI's 'next generation' AI infrastructure. The deal, which will provide 6 gigawatts of computing power with the first 1 gigawatt batch deploying in late 2026, also grants OpenAI a warrant to purchase up to 160 million shares, representing approximately a 10% stake in AMD. This strategic alliance is a significant move for OpenAI to expand its AI computing resources and diversify its supply chain, which has been heavily reliant on Nvidia. For AMD, the agreement provides a substantial boost in the competitive AI chip market. Following the announcement, AMD shares surged 25%, while Nvidia's stock saw a slight dip. Analysts suggest the deal highlights the immense and growing demand for AI compute power across the industry.
