Openai and the chipmaker amd announced on monday that they had signed a Multibillion-Doller Chip Deal that would also give also give the chatgpt creather the option to buy a number a number.
The deal offers Openai an Opportunity to Buy 10% in AMD and Marks a Major Vote of Confidence in the company’s ai chips and software. Shares of AMD surged more than 30% and added about $ 80bn to its market capitalization after the announcing.
“We View This Deal as Certainly Transformative, Not just for AMD, but for the dynamics of the industry,” said forrest Norrow, AMD’s Executive Vice-Prescent.
The latest deal, among a string of investments, is a testament to openai and the broader ai industry’s voracious appetiite for computing power as companies race toward developing ai tachnology Exceds Human Intelligence. Sam Altman, The Openai Ceo, Has Said The Biggest Constraint on his company’s growth is access to computing power, which comes in the form of enormous datacents filled with advanceductor Chips. Last Week, Nvidia Announced it would invest $ 100bn in openai, forging a close alliance between two of the leading firms in artificial intelligence.
Monday’s Agreement Covers The Deployment of Hundreds of Thousands of AMD’s AI Chips, or Graphics Processing Units (GPUS), Equivalent to SIX GigaAWATS, Over Sems Beginning in the THECOND HOLF 2026. This is roughly equivalent to the energy needs of 5M us households, or the electricity produced yearly by the hover dam three times over. AMD SAID Openai will build a one-gigawatt facility based on its forthcoming Mi450 series of chips beginning next year.
As part of the arrangement, AMD Issued a Warrant that Gives Openai The Ability to Buy Up to 160m Shares of AMD for 1 Cent’s Each over the Course of the Chips Deal.
AMD Executives Expect the Deal to Net Tens of Billions of Dollars in Annual Revenue. Because of the ripple effect of the agreement, AMD said it expected to receive more than $ 100bn in new Revenue Over Over Four Years from Openai and Other Customers.
“Other people are going to come along with it if it is really the pioneer, a pioneer in the industry
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The deal with amd will help openai building enough ai infrastructure to meet its needs, altman said in a statement.
It was not immmediatedly clear how openai would fund the huge deal with amd. The Startup, Valued at Roughly $ 500BN, has generated about $ 4.3bn in the first half of 2025 and has burned through $ 2.5bn in cash, according to media reports, AS It SPLURGES ONATROCTING Top Talent and Invests Heavily in Developing New Ai Tools.
