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 $30+ Billion in Stock to Sweeten the Deal
wccftech.com/amd-instinct-mi450x-has-forced-nvidia-to-make-changes-with-the-rubin-ai-chip/There is plenty of information on AMD's plans for their MI450x Helios platform, but here is AMD's own news about it back in June...
www.amd.com/en/blogs/2025/amd-delivering-open-rack-scale-ai-infrastructure-to-unlock-agentic-ai.html
More and more companies requested from Nvidia to open up their insulated ecosystem and allow custom GPUs, CPUs and network switches, as they are not happy being completely locked in. Nvidia proposed to roll out NVLink Fusion topologies, but this does not seem open enough, as it still forces the adoption and licensing of NVLink C2C into custom silicon. This is precisely where AMD x86 systems will have a capability to be more flexible, customized and tailored to clients' needs without locking entire ecosystem into silicon design and IP dependency. Hence such a big push by global players to develop UCIe and UALink standards and ecosystem.
It's not surprising that Nvidia has managed to get Intel's x86 CPUs into NVLink Fusion ecosystem deal. In some Xeons, Intel will license and adopt the NVLink C2C in silicon, so that both players respond to growing demands from clients and fend off ever increasing adoption of fast EPYC CPUs in data centers. We will see how this plays out in H2 2026 onward.
And that's not even a sarcastic question!There is NO such thing as a "non-profit" . It's non-profit so they won't be paying any taxes. Something like Amazon was and is still doing. ZERO profit means all is just re-invested using financial shenanigans.
You can not go on for a long time if you use Lamborghini or Ferrari to deliver pizza. Sure is Posh and fast delivery but at some point you have to pay for their fuel and repairs and there are doubts that a lot of people will pay 100$ for 1 Pizza. So or they crash or they try the option to raise across all the IT products Hardware/Software an AI tax that you will pay even if you do not use their services. Very nice of them, true?
For whom loves big fires this will be probably quite spectacular one.
Also, damn me i bought AMD shares quite a while ago when it was expensive(and their stock apparently always falls), even with the 35% hike i'm still in the red, f me (same happened to me with intel stock, even with the nvintel hike i'm still in the red)
And I still fail to see a good reason for this AI bubble to still grow at the expenses it grows. Every time I ask an AI bro why it's underrated and underused they don't provide any interesting and valid data.
I'm glad it didn't happen though, imagine having CHATGPT spying on every single thing you do on an AMD system.
The point is that if AMD's management was remotely competent, they'd be buying companies, instead of getting bought.
OpenAI will have the option to get those AMD shares IF AMD's share price goes close to $600. I mean, if OpenAI helps AMD's share price to get so much higher, give them more than 10% of the company. They deserve it.Xiling says "Hello"
Pensando says "Hello"
ZT Systems says "Hello"
first three that came to mind.
AMD is buying marketing with their collaboration with OpenAI and it is giving a reason to OpenAI to invest in AMD's hardware to get almost 100 billions back down the road. And you want OpenAI to be using AMD hardware because that will make others to start thinking "Hey, maybe AMD hardware is good. Maybe we don't need Nvidia". Not to mention the software solutions that OpenAI will create in ROCm instead of CUDA.
AMD's move to offer OpenAI shares, that tomorrow could be worth 100 billions, matches Nvidia's $100 billion investment in OpenAI and this is amazing considering that AMD's valuation is less than 1/10th of Nvidia's and AMD doesn't have the cash that Nvidia has. Nvidia's investment in OpenAI could have the same results as Intel's money to OEMs 25 years ago, with the result companies like Dell selling ONLY Intel Pentium 4 systems, even at a period where Athlon64 was clearly superior to anything Intel was offering. If OpenAI is honest from their part in this deal and if AMD manages to offer the quantities and the performance OpenAI needs, then this deal is the deal that will secure AMD's future in the AI market.
I'm talking about Nvidia's investment in Intel, both a direct competitor and a competitor to Nvidia's biggest competitor. Nvidia is selling shovels in the gold rush, and using the money from that to make strategic investments that will be worth it for 20+ years, even if AI crashes.
AMD is going the opposite way, being bought-out piecemeal by its customers. The balance of power is completely opposite, and shows how mismanaged AMD has been.