OpenAI just gave AMD a big boost in the AI chip wars

In a groundbreaking move, AMD has entered into a multi-billion-dollar agreement to supply artificial intelligence chips to OpenAI. This significant multi-year partnership was revealed on Monday and marks a pivotal step in enhancing the computing power necessary to unlock the full capabilities of AI technology. Under the terms of the deal, OpenAI will utilize 6 gigawatts of AMD GPUs, with the initial 1 gigawatt set to be deployed in the latter part of 2026. Sam Altman, co-founder and CEO of OpenAI, expressed his enthusiasm for the collaboration, stating, "This partnership is a major step in building the compute capacity needed to realize AI's full potential." This alliance is a substantial boost for AMD as it strives to compete with Nvidia, the current leader in the AI chip market. In addition to strengthening its position, the agreement allows OpenAI to acquire a stake of approximately 10% in AMD, with shares granted as the companies achieve specific deployment goals and AMD meets particular share price benchmarks. Following the announcement, AMD’s stock experienced a surge of nearly 27% in premarket trading. AMD has not yet provided a comment regarding the partnership, while OpenAI directed inquiries to a statement available on its press page. This story is still developing, and further updates are anticipated.