OpenAI's president breaks down the AMD deal: 'We need as much computing power as we can possibly get'

In a significant move that underscores the rising demand for artificial intelligence services, OpenAI has announced a partnership with AMD to enhance its computing capabilities. OpenAI President Greg Brockman emphasized the urgent need for increased processing power during an interview on CNBC, stating, "We need as much computing power as we can possibly get. The whole industry is gearing up for the overwhelming demand for AI services we expect in the coming years." Brockman has long advocated for ensuring each user has access to their own GPU, which necessitates a substantial increase in OpenAI's computing capacity. He warned of an impending "compute scarcity" as demand for AI services surges across the ecosystem, highlighting the importance of the industry collaborating to prepare for this potential shortage. The partnership involves deploying 6 gigawatts of GPUs, with the first gigawatt utilizing AMD's Instinct MI450 expected to launch in the latter half of 2026. This agreement follows weeks of discussions within OpenAI's leadership about the critical need for enhanced computing resources. CFO Sarah Friar noted that operating "constantly under compute" is a significant challenge. OpenAI CEO Sam Altman remarked on the partnership's importance, stating, "This collaboration is a crucial step in building the compute capacity necessary to unlock the full potential of AI. AMD's expertise in high-performance chips will allow us to expedite advancements and deliver the benefits of cutting-edge AI solutions more rapidly." The urgency to expand computing resources has prompted OpenAI to not only team up with AMD but also to continue strengthening its collaboration with Nvidia, which recently pledged to invest up to $100 billion in the company. Brockman acknowledged Nvidia's unique offerings in the market, saying, "We utilize their technology for both training and inference, while AMD is making impressive strides with their next-generation chips." As part of this deal, AMD provided OpenAI with a warrant for up to 160 million shares of its common stock, contingent on meeting certain performance benchmarks. AMD CEO Lisa Su explained that this share warrant is meant to solidify a long-term partnership, noting, "As OpenAI rolls out its compute solutions, it represents a significant revenue opportunity for AMD, with each gigawatt translating to double-digit billions in revenue for us." In response to the announcement, AMD's stock saw a dramatic increase, soaring over 38% at market open on Monday.