Advanced Micro Devices (AMD) announced Monday a landmark multi-year deal to supply artificial intelligence chips to OpenAI, with the added incentive of a warrant allowing OpenAI to acquire up to 10% of AMD if certain milestones are met.
Under the agreement, AMD will deploy six gigawatts of GPU computing power over several years beginning in the second half of 2026. The first phase involves rolling out one gigawatt of infrastructure.
The warrant gives OpenAI the right to purchase up to 160 million shares of AMD common stock at $0.01 per share, contingent on performance benchmarks such as chip shipments and AMD’s stock price hitting set levels.
AMD’s leadership called the agreement “transformative” for both companies, positioning AMD further into the AI infrastructure race and increasing competition with current AI chip leader Nvidia.
Analysts project the deal could generate tens of billions of dollars in annual revenue for AMD, with the broader industry watching closely as the balance of power in AI hardware may shift in years to come.
News Source: Reuters
