Advanced Micro Devices (AMD) has announced a significant partnership with OpenAI that is expected to generate substantial revenue. This collaboration aims to support the rapid expansion of artificial intelligence (AI) infrastructure.
Details of the AMD and OpenAI Deal
AMD will supply multiple generations of its powerful graphics processing units (GPUs) to OpenAI. The GPUs are integral to powering six gigawatts of AI infrastructure. The initial deployments are projected to begin in the second half of 2026.
- Projected Revenue: AMD anticipates $6.56 billion in AI GPU sales for fiscal 2025.
- Fiscal 2026 Forecast: The sales figure is expected to rise to $10.26 billion, with potential increases as analysts refine their estimates.
Market Reactions and Competitive Landscape
This partnership marks another strategic move by OpenAI to secure vast computing resources necessary for the AI surge. Previously, OpenAI has made substantial agreements with other tech giants, including Broadcom and Oracle.
The news has led to noticeable fluctuations in the stock market. Following the announcement, shares of Nvidia, a leader in the AI GPU sector, shifted from a positive to a negative performance.
Equity and Shareholder Implications
As part of this deal, AMD will provide warrants that allow OpenAI to acquire 160 million shares, equating to approximately 10% of the company. This acquisition hinges on achieving specific operational and stock price targets over time.
Statements from Company Leaders
Lisa Su, AMD’s CEO, highlighted the partnership’s potential, stating, “This collaboration merges the expertise of AMD and OpenAI, fostering a win-win situation for advancing AI.”
Sam Altman, OpenAI’s CEO, emphasized the importance of AMD’s chip technology in accelerating AI development, stating, “This alliance will expedite the delivery of advanced AI benefits to the global community.”
