AMD signs AI chip-supply deal with OpenAI

AMD said on Monday it will supply AI chips to OpenAI in a multi-year deal that would bring in tens of billions of dollars in annual revenue/

SAN FRANCISCO — AMD said on Monday it will supply artificial intelligence chips to OpenAI in a multi-year deal that would bring in tens of billions of dollars in annual revenue and give the ChatGPT creator the option to buy up to roughly 10% of the chipmaker.

The deal offers OpenAI an opportunity to take a stake in one of Nvidia’s most formidable rivals and is a powerful endorsement of Advanced Micro Devices’ (AMD’s) AI chips and software.

“We view this deal as certainly transformative, not just for AMD, but for the dynamics of the industry,” AMD executive vice president Forrest Norrod told Reuters on Sunday.

The agreement 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.

AMD said OpenAI would build a one-gigawatt facility based on its forthcoming MI450 series of chips beginning next year, and that it would begin to recognize revenue then.