AMD Scores Major Deal with OpenAI, Opens Door to 10% Stake
AMD has secured a significant deal with OpenAI, supplying its high-performance chips and opening the door for OpenAI to potentially acquire a 10% stake in the company. This move hints at OpenAI's strategy to diversify its supply chain, moving away from Nvidia's dominance.
The agreement sees AMD providing OpenAI with its latest Instinct MI450 graphics chips, with the first batch of 1 gigawatt worth of chips slated for deployment in the second half of 2026. The total computing power to be supplied is a substantial 6 gigawatts, indicating the high demand for such power in AI infrastructure development.
AMD has issued OpenAI with a warrant allowing it to purchase up to 160 million shares of AMD's common stock. This warrant will vest based on computing power deployment milestones and unspecified share-price targets. Additionally, OpenAI has the option to buy up to a 10% stake in AMD, further solidifying their partnership.
Barclays analysts have noted that this deal is a clear sign of the high demand for computing power in the AI sector. OpenAI CEO Sam Altman has expressed enthusiasm about the partnership, stating that it will accelerate progress in AI.
AMD's deal with OpenAI is a significant boost for the company, providing a substantial supply of high-performance chips and opening the door for potential equity investment. For OpenAI, the partnership signals a diversification of its supply chain and a commitment to accelerating progress in AI.
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