Photo by Igor Omilaev on Unsplash
OpenAI’s hunger for more AI muscle just gave AMD one of its biggest wins yet.
On Monday, AMD revealed a massive multi-year deal to supply OpenAI with high-powered AI chips starting in the second half of 2026. The scope? We’re talking hundreds of thousands of AMD’s graphics processing units (GPUs), with a total computing power equivalent to 6 gigawatts. For context, that’s enough juice to run several giant data centers.
And the cherry on top? The deal includes a stock option that would let OpenAI snatch up to 10 percent of AMD’s shares—for just a penny each.
Yep, 1 cent per share.
What’s in the deal?
Let’s break it down:
- OpenAI is getting access to AMD’s upcoming MI450 series chips
- The agreement runs over several years, beginning in late 2026
- AMD expects to pull in over $100 billion in revenue from OpenAI and others following their lead
- OpenAI gets the right to buy up to 160 million AMD shares for $0.01 apiece
This partnership is a big moment for AMD. It’s long been a strong player in the GPU space, but has mostly trailed behind Nvidia, especially in AI. Now, with this deal, AMD is positioning itself as a serious supplier of choice for high-stakes AI workloads.
“This is transformative, not just for AMD, but for the dynamics of the industry,” said Forrest Norrod, Executive VP at AMD, in a statement shared with Reuters.
Photo by Community Archives of Belleville and Hastings County on Unsplash
Why OpenAI is betting big on AMD
As AI models grow faster and hungrier, chips are becoming the new fuel. OpenAI, the creator behind ChatGPT, knows it needs a steady—and diversified—supply chain. Nvidia has long been its go-to, and they’re still in the picture. In fact, Nvidia also inked a $100 billion investment package with OpenAI, which involves 10 gigawatts of its next-gen chips.
But now OpenAI is spreading its bets. By bringing AMD deeper into the fold, it’s reducing reliance on one provider—and possibly setting up a better negotiating position for the future.
This wasn’t a sudden switch. According to AMD and reporting from Reuters, OpenAI has collaborated with AMD for years, offering input on chip designs like the MI300X. This new rollout is just a much bigger next step.
And behind the scenes, OpenAI is quietly developing its own AI chips, too. So this deal isn’t replacing those plans—it’s complementing them. The AI arms race isn’t slowing down any time soon.
Photo by Leif Christoph Gottwald on Unsplash
How this affects AMD
For AMD, this deal could be a turning point. They’ll start booking revenue from the agreement next year, once OpenAI begins construction of a 1 gigawatt data center powered by AMD’s MI450 chips.
It’s still a tough fight: Nvidia remains the heavyweight in this category. But pulling in a top-tier partner like OpenAI gives AMD not just cash, but credibility. It signals to the industry that AMD’s AI chips aren’t just an alternative—they’re a core part of the future compute stack.
And that 10% stock option? It’s unusual—and bold. It ties AMD’s future success to OpenAI’s growth and shows AMD is willing to bet big to win strategic partners.
The bottom line
This AMD-OpenAI deal isn’t just about hardware. It’s a sign of how fast the AI world is evolving—and how important it is to lock down processing power before the next wave of AI models hit.
If you’re watching the chip wars, keep an eye on 2026. Things are about to get a lot more interesting.
Keywords: AMD AI chips, OpenAI AMD partnership, MI450 GPUs, AI compute power, AMD stock option deal, AI chip market, Nvidia vs. AMD, OpenAI chip suppliers
