A fresh supply deal could reshape how artificial intelligence platforms scale and compete
A landmark deal between OpenAI and Advanced Micro Devices (AMD) is set to reshape the AI infrastructure landscape.
OpenAI has committed to purchasing 6 gigawatts of AMD’s high-performance chips—an agreement that could see the AI leader take a 10 percent stake in the chipmaker, according to CNBC.
AMD’s stock soared more than 23 percent following the announcement, underscoring the market’s confidence in the partnership’s potential to generate tens of billions of dollars in new revenue for the chip company over the next five years, as reported by The Wall Street Journal.
The deal includes a warrant for up to 160 million AMD shares, vesting in phases as OpenAI deploys the chips and meets technical and commercial milestones.
OpenAI’s President Greg Brockman told CNBC that the company’s ability to scale and reach all of humanity depends on access to massive computing power, a need that has already limited the launch of new features in ChatGPT and other products.
OpenAI plans to use AMD’s Instinct GPUs for inference functions, which are critical for AI applications to respond to user queries, as noted by The Wall Street Journal.
AMD CEO Lisa Su described the partnership as a “win-win,” emphasizing that foundational compute is essential for AI’s projected decade-long growth path.
Su added that the deal validates AMD’s technology roadmap and positions the company as a core strategic partner in one of the largest GPU deployment agreements in the industry to date, according to CNBC.
The agreement is also expected to reduce OpenAI’s reliance on a single vendor and help ease industrywide supply chain pressures.
This diversification comes as OpenAI continues to expand its infrastructure ambitions, with ongoing projects involving other major players such as Nvidia, Oracle, and Broadcom.
