Monday, October 6th 2025
OpenAI will Buy AMD GPUs, AMD Offers $30+ Billion in Stock to Sweeten the Deal
AMD (NASDAQ: AMD) and OpenAI today announced a 6 gigawatt agreement to power OpenAI's next-generation AI infrastructure across multiple generations of AMD Instinct GPUs. The first 1 gigawatt deployment of AMD Instinct MI450 GPUs is set to begin in the second half of 2026. AMD's strong leadership in high-performance computing systems and OpenAI's pioneering research and advancements in generative AI places the two companies at the forefront of this important and pivotal time for AI.
Under this definitive agreement, OpenAI will work with AMD as a core strategic compute partner to drive large-scale deployments of AMD technology starting with the AMD Instinct MI450 series and rack-scale AI solutions and extending to future generations. By sharing technical expertise to optimize their product roadmaps, AMD and OpenAI are deepening their multi-generational hardware and software collaboration that began with the MI300X and continued with the MI350X series. This partnership creates a true win-win for both companies, enabling very large-scale AI deployments and advancing the entire ecosystem.
As part of the agreement, to further align strategic interests, AMD has issued OpenAI a warrant for up to 160 million shares of AMD common stock, structured to vest as specific milestones are achieved. The first tranche vests with the initial 1 gigawatt deployment, with additional tranches vesting as purchases scale up to 6 gigawatts. Vesting is further tied to AMD achieving certain share-price targets and to OpenAI achieving the technical and commercial milestones required to enable AMD deployments at scale.
Source:
AMD
Under this definitive agreement, OpenAI will work with AMD as a core strategic compute partner to drive large-scale deployments of AMD technology starting with the AMD Instinct MI450 series and rack-scale AI solutions and extending to future generations. By sharing technical expertise to optimize their product roadmaps, AMD and OpenAI are deepening their multi-generational hardware and software collaboration that began with the MI300X and continued with the MI350X series. This partnership creates a true win-win for both companies, enabling very large-scale AI deployments and advancing the entire ecosystem.
"We are thrilled to partner with OpenAI to deliver AI compute at massive scale," said Dr. Lisa Su, chair and CEO, AMD. "This partnership brings the best of AMD and OpenAI together to create a true win-win enabling the world's most ambitious AI buildout and advancing the entire AI ecosystem."
"This partnership is a major step in building the compute capacity needed to realize AI's full potential," said Sam Altman, co-founder and CEO of OpenAI. "AMD's leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster."
"Building the future of AI requires deep collaboration across every layer of the stack," said Greg Brockman, co-founder and president of OpenAI. "Working alongside AMD will allow us to scale to deliver AI tools that benefit people everywhere."
"Our partnership with OpenAI is expected to deliver tens of billions of dollars in revenue for AMD while accelerating OpenAI's AI infrastructure buildout," said Jean Hu, EVP, CFO and treasurer, AMD. "This agreement creates significant strategic alignment and shareholder value for both AMD and OpenAI and is expected to be highly accretive to AMD's non-GAAP earnings-per-share."Through this partnership, AMD and OpenAI are building the infrastructure to meet the world's growing AI demands, by combining world-class innovation and execution to accelerate the future of high-performance and AI computing.
74 Comments on OpenAI will Buy AMD GPUs, AMD Offers $30+ Billion in Stock to Sweeten the Deal
6*10^9 Watts?
Just think about how many graphic cards those are.
According to Toms:
www.tomshardware.com/tech-industry/openai-and-amd-announce-multibillion-dollar-partnership-amd-to-supply-6-gigawatts-in-chips-openai-could-get-up-to-10-percent-of-amd-shares-in-return
In case that they remove that, since they have done that in the past:
Dang 35% increase in premarket...nuts
I assume the graphic card is not available yet. I may assume 600 Watts per card. I was also curious about how many racks etc. What I remember 8 graphic cards per 2U rack. + maintanence space makes it a shed with ~192 x 192 m. The core question was how many graphic cards? how many motherboard rack units? how many racks ( i think i remember 21 servers per rack)? how big is the theorectically a shed filled with that with enough maintenance space in front and back of the rack
None of those ai could answer the question how many. None did answer that the gpu seems not to be released yet.
I also see the AI boom as similar to the Internet Bubble, where many try to stay afloat before things settle down. Today, I was discussing with someone how the AI craze resembles the internet's rise and subsequent plateau. Many protections and promises were made that eventually vanished. With all this volatility, I'm wondering what will remain once the AI market stabilizes. For now, I believe many pieces of equipment and investments are sidelined, as life moves on around them, and a Lot of people will see the loss of many bad investments.
Bigger models don't fit within existing AI-Factories, so larger scale networked systems are required.
The more networked computing resources available, the faster models can be trained, the faster the rate of progression in the field. It's a race.
The future of "AI" is building massive amounts of pointless infrastructure and wondering how long it will take for people to realise or for some use case to show up and save the day... That simple really.
The current MI350X does up to 1000W, while the MI355X bumps this number to 1400W. If we go with the former, that'd be 6 million GPUs.
Of course it'll be less than that since there's the entire power for the rest of the system as well.
NVIDIA intends to invest up to $100 billion in OpenAI. - link
Now OpenAI invests in AMD?
It's a really odd situation, where on the tech side most people can see what the problem is. But on the investing side, the money just keeps piling in. Wouldn't want to bet when and / if it'll end.
If I understand the numbers, what that "puny" 6GW means, if @Imouto for example above is right, then AMD is going to finally start making double digits in 2026. And that's from this deal alone. Companies looking at OpenAI buying AMD hardware could at least make them consider AMD hardware. That will help AMD to remain profitable and keep investing in CPUs and GPUs, while having enough money to buy capacity at TSMC, which is extremelly important. Also by giving OpenAI the opportunity to buy shares of AMD at probably preferable prices, will also give them an extra reason to keep collaborating with AMD about future Instinct cards and not only Instinct cards but also software in the form of ROCm. AMD's share value going up, means OpenAI makes more money out of those shares and considering OpenAI needs money this is something that could motivate them to keep a close collaboration with AMD. AMD needs this to remain significant in the market and not fade away. It also gives them the opportunity to be seen as the de facto alternative to Nvidia, also very important. This isn't just a big deal in GWs for AMD, it's also a huge marketing move from their part.
P.S. I "asked" Perplexity to give me an estimation for AMD's revenues from a 6GW dealNvidia is making those 100+ billions in two quarters, AMD will take 3-4(?) years. It's not bad, not bad at all. AMD's share price has stalled the last couple of years because AMD's revenues where increasing in a snail's pace(compared to Nvidia's). This is changing.