OpenAI and AMD reveal billion-dollar partnership - Sam Altman says deal will "bring the benefits of advanced AI to everyone faster"

Date:
Tue, 07 Oct 2025 11:31:00 +0000

Description:
OpenAI will take a major stake in AMD as part of major deal.

FULL STORY ======================================================================AMD and OpenAI sign a multi-year deal for 6 GW of GPUs OpenAI will also get up to 160 million shares ($32.5 billion) in AMD AMD shares surged 37% following the announcement

OpenAI has signed a major deal with AMD in an effort to continue its
expansion of AI infrastructure.

The billion-dollar, multi-year agreement will have AMD being responsible for deploying 6 GW of its Instinct GPUs, with the first gigawatt coming from AMD Instinct MI450 series GPUs in the second half of 2026.

Under the deal, OpenAI will also get access to future generations of AMDs chips, as well as better software-hardware optimization in the future. OpenAI will use AMD for more compute

Although precise financial details have not been revealed, the companies said the deal would deliver tens of billions of dollars in revenue for AMD while accelerating OpenAIs AI infrastructure buildout.

This partnership creates a true win-win for both companies, enabling very large-scale AI deployments and advancing the entire ecosystem, OpenAI said in its announcement .

AMD has also issued OpenAI a warrant for up to 160 million shares of AMD common stock, which the ChatGPT maker can vest when specific milestones of
the agreement are achieved.

Share prices surged over 37% before dropping slightly (equivalent of around 24% growth) in the day following the announcement. With a share price of $203.71, 160 million shares would net OpenAI over $32.5 billion at todays value.

This agreement creates significant strategic alignment and shareholder value for both AMD and OpenAI and is expected to be highly accretive to AMD's non-GAAP earnings-per-share, AMD CFO Jean Hu noted.

OpenAI CEO Sam Altman described the deal as a major step in building the compute capacity needed to realize AIs full potential.

AMDs most recent quarter drew in a record $7.7 billion in revenue, up 32%
year over year, driven by strategic investments across hardware, software and systems.

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Link to news story: https://www.techradar.com/pro/openai-and-amd-reveal-billion-dollar-partnership -sam-altman-says-deal-will-bring-the-benefits-of-advanced-ai-to-everyone-faste r


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