OpenAI Invests $90B in AMD, Gains 10% Stake and Advanced AI Processors
OpenAI has sealed a substantial agreement with AMD, acquiring up to a 10 percent stake in the company. This strategic alliance, valued at $90 billion, will see AMD supply OpenAI with advanced AI processors starting in late 2026. The deal also includes options for OpenAI to acquire up to 160 million AMD shares at a discounted price, contingent on certain milestones.
Under the agreement, OpenAI will initially utilize a single gigawatt of AMD's Instinct MI450 GPUs for AI computations, with the remainder consisting of yet-to-be-released AI processors. This deal is part of OpenAI's drive to expand its AI infrastructure and AMD's aim to replicate Nvidia's success in the AI chip market.
The alliance is a windfall for AMD, with its stock price soaring by nearly 24 percent following the announcement. AMD's open software stack, unlike Nvidia's, appeals to major customers seeking to avoid vendor lock-in. AMD's upcoming Helios offering, a scalable architecture combining GPUs, DPUs, CPUs, and Ethernet connectivity, is set to further bolster its position in the AI chip market.
The AMD-OpenAI partnership underscores intensifying competition in the AI chip market. With OpenAI investing in AMD and AMD supplying state-of-the-art AI processors, both companies stand to gain significantly. This deal enables OpenAI to broaden its AI capabilities while AMD gains a major customer and a substantial investment, potentially boosting its revenue and shareholder value.
