AMD will start delivering GPUs for the first gigawatt of compute in the second half of 2026.
The first gigawatt deployment will include AMD’s Instinct MI450 GPUs
Photo Credit: OpenAI
AMD and OpenAI announced a partnership to develop artificial intelligence (AI) infrastructure on Monday. As part of a massive deal, the San Francisco-based AI firm will deploy 6GW of AMD GPUs over a period of multiple years and across multiple generations of chips. The new deal comes just weeks after the ChatGPT maker signed an agreement with Nvidia to deploy 10GW worth of its AI hardware. These deals highlight both OpenAI's increasing need for compute and the aftermath of reducing reliance on Microsoft.
In separate newsroom posts, both AMD and OpenAI confirmed the 6GW agreement to develop the AI infrastructure. The first gigawatt deployment will include AMD's Instinct MI450 GPUs, and it is scheduled to be delivered starting in the second half of 2026.
The agreement makes OpenAI a “core strategic compute partner” that will conduct large-scale deployment of AMD technology and scale AI solutions. While the deployment will begin with the AMD Instinct MI450 series GPUs, it also extends to future generations of chipsets that the company manufactures.
This isn't the first time the two companies have partnered for AI infrastructure. AMD has provided both MI300X and MI350X series GPUs for its data centres in the past.
“Our partnership with OpenAI is expected to deliver tens of billions of dollars in revenue for AMD while accelerating OpenAI's AI infrastructure buildout,” said Jean Hu, EVP, CFO and treasurer, AMD.
On the other hand, AMD has issued a warrant that allows OpenAI to purchase up to 160 million shares of its common stock. However, this purchase is based on AMD completing certain deployment targets. The milestone for the first tranche of investment includes the deployment of the first gigawatt of GPUs, and further investments will occur as the chipmaker continues to fulfil the remaining portion of the 6GW worth of infrastructure.
Additionally, these investments are also tied to the chipmaker reaching a certain share price target, which is said to be $600 (roughly Rs. 53,200). AMD stocks are trading at $203.71 (roughly Rs. 18,100) as of writing this. Interestingly, OpenAI has also signed a deal with Nvidia, which will see the chipmaker provide 10GW worth of GPUs to the ChatGPT maker to build out its AI infrastructure.
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