- AMD agreed to a massive multi-year deal to provide its AI chips to OpenAI.
- AMD’s chief financial officer said the deal is expected to deliver tens of billions of dollars in revenue.
- Nvidia has long been the dominant player in the AI chip market.
AMD has agreed to a multi-billion-dollar partnership to supply its artificial intelligence chips to OpenAI.
The multi-year deal, announced Monday, will see OpenAI deploy 6 gigawatts of AMD GPUs, with the first 1 gigawatt deployment set to begin in the second half of 2026.
“This partnership is a major step in building the compute capacity needed to realize AI’s full potential,” Sam Altman, cofounder and CEO of OpenAI, said in the Monday announcement.
The move provides a significant boost to AMD against Nvidia, which is the dominant player in the AI chip market.
It also gives OpenAI the opportunity to take a roughly 10% stake in AMD, with shares vesting as the companies hit deployment targets and AMD hits share price targets.
AMD’s chief financial officer, Jean Hu, said the deal is expected to deliver “tens of billions of dollars in revenue” for the company.
AMD’s share price was up as much as 27% in premarket trading on Monday.
In a statement, Lisa Su, the chair and CEO of AMD, called the partnership a “true win-win” that will advance the entire AI ecosystem.
In response to requests for comment, AMD and OpenAI directed Business Insider to statements on their press pages.
This is a developing story. Please check back for updates.
