Advanced Micro Devices (AMD) surged this week after announcing a multibillion-dollar partnership with OpenAI to power AI data centers using AMD processors, marking one of the most direct challenges yet to Nvidia. Under the five-year deal, OpenAI will purchase 6 gigawatts of AMD chips, starting with the MI450 next year, and could receive up to 10% of AMD shares if deployment milestones are met.
The agreement comes after OpenAI’s string of multibillion-dollar deals with Nvidia, Oracle, and Microsoft, which collectively helped the company secure massive AI compute capacity. Unlike those prior arrangements, the AMD deal makes OpenAI a shareholder in the chipmaker, creating a reciprocal relationship while further diversifying its supplier base and reducing reliance on a single vendor.
OpenAI CEO Sam Altman called the partnership a step toward building the infrastructure needed for next-generation AI models, emphasizing that more such deals are expected. By combining AMD’s high-performance chips with OpenAI’s AI expertise, the collaboration could reshape the competitive landscape for AI hardware and data center deployments, putting added pressure on Nvidia’s dominance.
With multiple strategic partnerships in place, OpenAI is rapidly expanding its global AI infrastructure — and the AMD deal may be the most ambitious yet.
