AMD and OpenAI have entered a multi-year agreement where AMD will supply its GPUs to power OpenAI's next-generation AI infrastructure. The deal anticipates AMD providing 6 gigawatts of computing power. The initial deployment of 1 gigawatt, featuring AMD's Instinct MI450 GPUs, is slated for the latter half of 2026.
AMD projects that this partnership will generate tens of billions of dollars in revenue. To further align interests, OpenAI will receive warrants for approximately 160 million shares of AMD stock, vesting as deployment milestones are achieved. The warrant's first tranche vests with the initial gigawatt deployment. Further vesting is tied to AMD achieving certain share price targets and OpenAI meeting technical and commercial milestones.
This collaboration aims to meet the increasing global demand for AI computing. The agreement is structured to be accretive to AMD's non-GAAP earnings per share.
