OpenAI just inked another multibillion-dollar deal.
The AI giant is buying 6 gigawatts and billions of dollars worth of Nvidia-rival chipmaker AMD’s latest generation chips to power its next-generation AI infrastructure.
AMD unveiled its next-generation Instinct chips at a launch event in July, when CEO Lisa Su took the stage with OpenAI CEO Sam Altman to announce that the AI giant would use the new chips.
The first 1 gigawatt of that deployment is set to begin in the second half of 2026. As OpenAI hits deployment targets, it will also gradually receive a total of 160 million AMD shares at 1 cent each, which translates to a roughly 10% stake in the chipmaker.
Nvidia is still the leader in the global chip industry, but AMD is its closest rival in the U.S., and Thursday’s deal gives the company a huge advantage in its efforts to compete.
The financials of the deal were not disclosed, but AMD chief financial officer Jean Hu said in the press release that the partnership was “expected to deliver tens of billions of dollars in revenue for AMD while accelerating OpenAI’s AI infrastructure buildout.”
Dealmaking is the name of the game
This is only the latest multibillion-dollar deal OpenAI has announced recently.
OpenAI and Nvidia announced a huge addition to their long-lasting partnership last month, with a $100 billion investment by Nvidia in OpenAI to support 10 gigawatts of data center and power capacity deployment. Just a few days prior to that, OpenAI also signed a $300 billion cloud deal with Oracle, which became one of the largest cloud contracts ever signed. Around the same time, OpenAI also inked a reportedly $10 billion deal with Broadcom to create custom in-house AI chips.
“Building the future of AI requires deep collaboration across every layer of the stack,” co-founder and President of OpenAI Greg Brockman said in a press release on Monday.
... continue reading