In a strategic move to diversify its hardware foundation, OpenAI has signed a multibillion-dollar agreement with AMD, reducing its reliance on a single chip supplier and fostering greater competition in the AI market. This deal marks a significant step for the ChatGPT creator to build a more resilient and powerful infrastructure for its future AI development.
The partnership comes just a week after Nvidia announced a planned $100 billion investment in OpenAI, forging a close alliance between them. By now striking a major deal with AMD, Nvidia’s primary competitor, OpenAI is strategically ensuring it is not dependent on one company for the GPUs that are the lifeblood of its operations. This multi-supplier approach is crucial for long-term stability and innovation.
The AMD deal is monumental in its own right. It involves the purchase of hundreds of thousands of AI chips, providing six gigawatts of computing power over several years. This enormous capacity is essential for OpenAI to continue pushing the boundaries of artificial intelligence. The deployments are scheduled to begin in the latter half of 2026.
Underscoring the strategic nature of the alliance, OpenAI has been given the option to acquire a 10% stake in AMD. This warrant to buy 160 million shares at a low price creates a powerful incentive for deep collaboration, moving beyond a simple transactional relationship and aligning the futures of the two tech giants.
The industry has taken notice of this power play. AMD’s stock soared over 30%, adding $80 billion to its market cap, as investors recognized the deal’s potential to shift market dynamics. AMD now expects the prestige of the OpenAI partnership to attract a wave of new customers, projecting over $100 billion in revenue over the next four years.
