AMD Announces Strategic Partnership with OpenAI

AMD has announced a strategic partnership with OpenAI, a leading AI research organization. The partnership aims to accelerate the development and deployment of AI technologies using AMD's high-performance computing hardware. The partnership will leverage AMD's EPYC and Radeon products to power OpenAI's cloud infrastructure and enable the development of AI applications for various industries.

Advanced Micro Devices (AMD) and OpenAI have announced a strategic partnership aimed at accelerating the development and deployment of AI technologies. The collaboration will leverage AMD's high-performance computing hardware, including EPYC and Radeon products, to power OpenAI's cloud infrastructure and enable the development of AI applications across various industries.

The partnership includes a significant equity component, with OpenAI receiving a warrant for up to 160 million shares of AMD common stock, contingent on achieving specific milestones and share-price targets. This deal is expected to generate substantial revenue for AMD, with the potential to generate over $100 billion over the next several years Groundbreaking AMD OpenAI Partnership Powers a New Era of AI Innovation and Global Expansion^[3].

The agreement marks a significant step in building the compute capacity needed to realize AI's full potential, according to OpenAI CEO Sam Altman. The initial deployment of 1 gigawatt of AMD Instinct MI450 Series GPUs is set to commence in the second half of 2026, with plans to scale up to 6 gigawatts over time Groundbreaking AMD OpenAI Partnership Powers a New Era of AI Innovation and Global Expansion^[3].

The partnership is an extension of an already existing collaborative effort between AMD and OpenAI, which has been working together on AI infrastructure projects for several years. The deal also comes at a crucial time for OpenAI, which is rapidly expanding its infrastructure capabilities and aiming to bring advanced AI technologies to a broader audience Groundbreaking AMD OpenAI Partnership Powers a New Era of AI Innovation and Global Expansion^[3].

The announcement of this partnership has boosted investor confidence in AMD, with shares soaring more than 35% in pre-market trading following the announcement Groundbreaking AMD OpenAI Partnership Powers a New Era of AI Innovation and Global Expansion^[3].