AMD and OpenAI have sealed a multi-year AI chip supply deal valued at tens of billions of dollars annually, and the agreement includes an option for OpenAI to purchase up to 10% of AMD’s stock for just 1 cent per share.
The pact covers large-scale shipments of AMD AI graphics processing units over several years, starting in the second half of 2026, signaling a strong endorsement of AMD’s AI hardware as the company competes with Nvidia for market leadership.
AMD executives project the collaboration could generate more than $100 billion in new revenue over four years from OpenAI and other customers attracted by the partnership. “We view this deal as certainly transformative, not just for AMD, but for the dynamics of the industry,” said Forrest Norrod, AMD Executive Vice President, in remarks to Reuters.
Income from the agreement is expected to start booking next year as OpenAI begins constructing a 1 gigawatt facility based on AMD’s forthcoming MI450 series chips.
OpenAI has long been diversifying its compute sources and has collaborated with AMD for years, with Reuters noting the arrangement does not alter OpenAI’s broader compute plans, including ongoing partnerships with Microsoft and other suppliers in the AI compute ecosystem. The deal underscores the intensifying competition with Nvidia in the AI chip market.
