OpenAI and AMD have signed a deal where the ChatGPT-maker would deploy six gigawatts of the semiconductor company’s artificial intelligence chips. This comes a week after OpenAI announced a deal with chip designer Nvidia for 10 gigawatts of computing power.
“Under this definitive agreement, OpenAI will work with AMD as a core strategic compute partner to drive large-scale deployments of AMD technology starting with the AMD Instinct MI450 series and rack-scale AI solutions and extending to future generations. By sharing technical expertise to optimize their product roadmaps, AMD and OpenAI are deepening their multi-generational hardware and software collaboration that began with the MI300X and continued with the MI350X series. This partnership creates a true win-win for both companies, enabling very large-scale AI deployments and advancing the entire ecosystem,” AMD said in a press release.
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“We are thrilled to partner with OpenAI to deliver AI compute at a massive scale,” said Lisa Su, chair and CEO, AMD. “This partnership brings the best of AMD and OpenAI together to create a true win-win enabling the world’s most ambitious AI buildout and advancing the entire AI ecosystem.”
Meanwhile OpenAI CEO Sam Altman said: “This partnership is a major step in building the compute capacity needed to realize AI’s full potential.”
“Building the future of AI requires deep collaboration across every layer of the stack,” said Greg Brockman, co-founder and president of OpenAI. “Working alongside AMD will allow us to scale to deliver AI tools that benefit people everywhere.”
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Su said in a conference call on Monday with investors that the first gigawatt will come online in the second half of 2026. She added that the timeline for deploying all six gigawatts will depend on when and how OpenAI and AMD can access enough power.
The deal covers the deployment of hundreds of thousands of AMD’s AI chips, or graphics processing units (GPUs), equivalent to six gigawatts, over several years beginning in the second half of 2026. This is roughly equivalent to the energy needs of five million U.S. households, or the electricity produced yearly by the Hoover Dam three times over. AMD said OpenAI would build a one-gigawatt facility based on its forthcoming MI450 series of chips beginning next year. AMD issued a warrant that gives OpenAI the ability to buy up to 160 million shares of AMD for 1 cent each over the course of the chips deal, as part of the arrangement.
OpenAI recently reached $500 billion in valuation following a deal that allowed employees to sell shares in the company. This was a significant step up from its previous valuation of $300 billion yet very much in line with the target, according to previous reports. The ChatGPT-maker has now surpassed Elon Musk’s to become the world’s largest startup.