- OpenAI has partnered with AMD in a deal to use the company’s chips for Artificial Intelligence infrastructure.
- The agreement includes a six-gigawatt deployment, starting with AMD Instinct MI450 GPUs scheduled for rollout in the second half of 2026.
- OpenAI plans to maintain and increase its ongoing purchasing relationship with NVIDIA despite the new AMD partnership.
- AMD issued OpenAI a warrant for up to 160 million shares, which will vest as project milestones are completed.
- Sanmina shares surged after confirmation it will work with AMD on supporting AI chip infrastructure for OpenAI.
On Monday, OpenAI announced a new partnership with AMD to provide chips for its artificial intelligence infrastructure. The agreement outlines a six-gigawatt plan using AMD’s hardware, with initial deployment scheduled for the second half of 2026.
Details of the deal include the deployment of AMD’s Instinct MI450 GPUs, which are specialized graphics processing units designed for data-heavy AI tasks. Under the agreement, AMD granted OpenAI a warrant that allows OpenAI to purchase up to 160 million shares of AMD stock, based on pre-defined project milestones.
OpenAI CEO Sam Altman said on X (formerly Twitter) that this partnership with AMD will supplement OpenAI’s established work with Nvidia. “The collaboration with AMD is incremental to our ongoing work with Nvidia, and we plan to continue increasing Nvidia purchases over time,” Altman stated. Despite the new partnership, Nvidia’s share price dropped by more than 2% at market open, while AMD’s share price rose 32%.
Wedbush analyst Dan Ives commented on X that this development is a “major validation moment” for AMD, highlighting the company’s strengthened position in the AI chip market. “This is a huge vote of confidence from OpenAI and Altman. Any lingering fears around AMD should now be thrown out the window,” Ives wrote.
AMD CEO Lisa Su stated that the agreement with OpenAI is not exclusive, explaining that AMD is ready to supply MI450 GPUs to all interested customers. She noted that deployment of the first gigawatt of hardware would occur “as soon as possible.”
Following the announcement, shares of Sanmina also rose nearly 24%. Sanmina acquired AMD’s data center infrastructure business from ZT Systems and will collaborate with AMD to support the rollout of its AI chips for OpenAI.
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