The partnership kicks off in the second half of 2026 with a gigawatt-scale deployment of AMD Instinct MI450 GPUs. While AMD anticipates the deal will generate tens of billions of dollars in revenue, the agreement also provides OpenAI with options to acquire up to 160 million AMD shares—representing roughly a ten percent stake—contingent upon hitting specific performance milestones.
AMD Challenges Nvidia With Massive OpenAI Compute Deal
Six gigawatts of processing power are heading to OpenAI’s data centers courtesy of AMD. The five-year agreement, which includes a significant equity stake for the chipmaker, marks a calculated attempt to break Nvidia’s near-monopoly on the hardware fueling the next generation of generative AI models.
This move arrives shortly after OpenAI signaled a potential $100 billion collaboration with Nvidia, framing Nvidia as a “preferred” partner for new infrastructure. By positioning AMD as a “core” strategic partner, OpenAI is leveraging the January restructuring of its Microsoft alliance to diversify its hardware supply chain. Markets reacted sharply to the announcement, pushing AMD stock up 24 percent in pre-market trading as investors weigh the impact of this competitive shift on the broader AI ecosystem.
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