OpenAI and Advanced Micro Devices (AMD) have reached a groundbreaking deal that could see Sam Altman’s company take a 10 percent stake in the chipmaker. The deal comes shortly after OpenAI signed a massive deal with Nvidia, the dominant player in the AI chip arena.
CNBC reports that the partnership, which was announced on Monday, has caused AMD stock to skyrocket by more than 28 percent in morning trading. Under the terms of the agreement, OpenAI will deploy six gigawatts of AMD’s Instinct graphics processing units (GPUs) over multiple years and across multiple generations of hardware. The rollout will commence with an initial 1-gigawatt deployment of chips in the second half of 2026.
As part of the deal, AMD has issued OpenAI a warrant for up to 160 million shares of AMD common stock. The vesting of these shares is tied to both deployment volume and AMD’s share price milestones. The first tranche will vest upon the first full gigawatt deployment, with additional tranches unlocking as OpenAI scales up to six gigawatts and meets key technical and commercial milestones required for large-scale rollout.
If OpenAI exercises the full warrant, it could acquire approximately 10 percent ownership in AMD, based on the current number of outstanding shares. While the exact dollar amount of the deal was not disclosed, OpenAI stated that it was worth billions.
Sam Altman, CEO of OpenAI, praised the partnership, stating, “AMD’s leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster.” The deal positions AMD as a core strategic partner to OpenAI, marking one of the largest GPU deployment agreements in the artificial intelligence industry to date.
The partnership is expected to help ease industrywide pressure on supply chains and reduce OpenAI’s reliance on a single vendor, but is likely to rub AI hardware giant Nvidia the wrong way. Breitbart News previously reported that OpenAI and Nvidia signed a massive $100 billion equity-and-supply agreement:
Nvidia has unveiled plans to invest a staggering $100 billion in OpenAI, the AI company behind ChatGPT. The announcement sent shockwaves through the global chip sector, with companies linked to Nvidia experiencing a notable boost in their share prices.
According to Nvidia CEO Jensen Huang, the deal between the two tech giants is set to be on an unprecedented scale. OpenAI intends to construct and deploy Nvidia systems that will require 10 gigawatts of power, equivalent to the output of between four and five million graphics processing units (GPUs).
In a blog post, Nvidia calls the deal “the Biggest AI Infrastructure Deployment in History:”
Shares of Nvidia fell more than one percent on Monday morning trading following the news of the OpenAI-AMD deal. OpenAI is also in talks with Broadcom to build custom chips for its next generation of models.
For AMD, the partnership is both a commercial milestone and a validation of its next-generation Instinct roadmap. After years of trailing Nvidia in the AI accelerator market, AMD now has a flagship customer at the forefront of the generative AI boom. AMD CEO Lisa Su said the deal creates “a true win-win enabling the world’s most ambitious AI buildout and advancing the entire AI ecosystem.”
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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