Oct 8, 2025
OpenAI & AMD Forge Strategic Alliance to Boost AI Hardware Capabilities
OpenAI locks in AMD’s next-gen MI450 GPUs, 1GW in 2026, scaling to 6GW plus warrants up to ~10% of AMD. Here’s why this megadeal matters.
- Generative AI
On October 6, 2025, in a landmark deal that marks a new chapter in the AI hardware space, OpenAI has entered into a strategic partnership with semiconductor giant AMD. The collaboration is set to reshape the future of AI, with OpenAI committing to purchase AMD’s high-performance AI chips for use in its rapidly expanding infrastructure.
The deal, valued in the billions, sees OpenAI securing AMD’s next-generation Instinct MI450 GPUs. These powerful chips are designed to accelerate AI workloads, making them a perfect fit for OpenAI’s high-performance computing needs. The partnership begins with an initial deployment of 1 gigawatt of AMD's chips, with plans to scale up to 6 gigawatts by the end of 2026.
This deal is a significant win for AMD, as it positions the company as a formidable competitor to Nvidia, a leader in AI hardware. Under the terms of the agreement, OpenAI also has the option to purchase up to 160 million AMD shares, potentially acquiring around 10% of the company based on certain performance milestones.
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