AMD Partners with OpenAI in a Five-Year Deal to Challenge Nvidia’s AI Chip Dominance
AMD has secured a groundbreaking five-year partnership with OpenAI, marking a new chapter in the global AI hardware race. The deal positions AMD as a key competitor to Nvidia’s dominance in the AI chip market.
Under the agreement, AMD will supply up to six gigawatts of processors for OpenAI’s future AI data centers, beginning in 2026. The rollout will start with one gigawatt of AMD’s next-generation Instinct MI450 GPUs, setting the stage for one of the most significant hardware collaborations in the artificial intelligence industry.
According to AMD, this long-term deal could generate “tens of billions of dollars” in revenue, although the exact financial details remain undisclosed. Investors reacted swiftly to the news, pushing AMD shares up by 24% in pre-market trading after the announcement.
AMD vs Nvidia: A Growing Rivalry in AI Infrastructure
This new partnership comes shortly after OpenAI’s letter of intent with Nvidia, where the company agreed to deploy up to 10 gigawatts of AI infrastructure and explore a potential $100 billion investment from Nvidia. Despite Nvidia remaining OpenAI’s “preferred strategic compute and networking partner,” AMD has now been officially recognized as a “core strategic compute partner.”
The deal also gives OpenAI the option to purchase up to 160 million AMD shares, representing roughly a 10% ownership stake, based on performance milestones achieved over the partnership period.
Leaders React: A Shared Vision for the Future of AI
OpenAI CEO Sam Altman emphasized the importance of the partnership, calling it a “major step in building the compute capacity needed to realize AI’s full potential.”
AMD CEO Lisa Su echoed his enthusiasm, describing the collaboration as a “win-win” that would accelerate the global expansion of AI computing power.
In a post on X (formerly Twitter), Sam Altman added:
“The world needs much more compute. Excited to partner with AMD to use their chips to serve our users! This is all incremental to our work with Nvidia, and we plan to increase our Nvidia purchasing over time.”
A Shift in OpenAI’s Strategy
This announcement also follows OpenAI’s decision to loosen its exclusivity agreement with Microsoft earlier this year. The change allows OpenAI to form new cloud and hardware partnerships, opening the door for greater collaboration across the AI ecosystem.
With this AMD-OpenAI partnership, the competition in the AI chip and GPU market is expected to intensify. As global demand for AI computing power continues to skyrocket, AMD’s latest move could significantly reshape the industry’s landscape and challenge Nvidia’s long-held lead in AI infrastructure.
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