SAN FRANCISCO, 06 October 2025 — Artificial intelligence giant OpenAI has signed a monumental multiyear agreement with Advanced Micro Devices (AMD) to secure tens of billions of dollars’ worth of graphics processing units (GPUs), marking one of the most consequential hardware deals in the history of AI computing.
Under the partnership, OpenAI will deploy 6 gigawatts of AMD GPUs over the coming years, with the first gigawatt set for rollout in the second half of 2026. The arrangement not only diversifies OpenAI’s chip supply chain, historically dominated by Nvidia, but also signals AMD’s aggressive push into the high-performance AI compute market.
As part of the agreement, AMD has issued OpenAI a warrant to purchase up to 160 million shares, or roughly 10 percent of its outstanding stock, at a nominal exercise price of US$0.01 per share. The warrants will vest gradually, contingent on deployment milestones and AMD’s share-price performance, potentially making OpenAI one of AMD’s largest shareholders in the coming years.
Industry analysts estimate that the deal could generate over US$100 billion in revenue for AMD across its AI and compute product lines over the next four years. The scale of this order underscores the escalating global demand for advanced computing infrastructure capable of powering next-generation generative AI systems.
The collaboration will leverage AMD’s forthcoming MI450 GPU series, designed for energy-efficient training of large language models (LLMs) and multimodal AI architectures. These chips will form the backbone of OpenAI’s data centers globally, driving both training and inference workloads.
For AMD, this partnership marks a strategic breakthrough. CEO Lisa Su has long identified AI acceleration as the company’s most important growth engine, and this agreement positions AMD as a credible challenger to Nvidia’s dominance in the AI hardware space.
OpenAI CEO Sam Altman, meanwhile, continues to expand his company’s hardware ecosystem to support rapid global scaling. Beyond cost optimization, the deal ensures long-term access to compute capacity critical for future AI model development, including forthcoming successors to GPT-5.
The partnership’s implications ripple far beyond Silicon Valley. With AMD’s chips manufactured primarily through Taiwan Semiconductor Manufacturing Co. (TSMC) and supplied by component makers across Japan, South Korea, and Malaysia, the contract reinforces Asia’s role as the operational heart of the global AI supply chain. Analysts predict significant downstream benefits for regional suppliers in chip packaging, cooling systems, and high-bandwidth memory.
Financial markets reacted swiftly to the news, AMD’s shares climbed on expectations of surging demand, while Nvidia’s stock softened amid renewed competitive pressure. Investors see this partnership as a signal that the AI industry is entering a new phase where collaboration between AI developers and hardware manufacturers becomes critical to sustaining growth.
By fusing compute power with capital alignment, and offering OpenAI a direct equity incentive, this deal represents a convergence of technological ambition and financial innovation. It solidifies AMD’s position as a central player in the global AI infrastructure race while giving OpenAI the computing muscle to drive the next wave of artificial intelligence breakthroughs.
