OpenAI and AMD Join Forces to Transform AI Data Centers

Published Date : 6/10/2025 

OpenAI has partnered with AMD to develop advanced AI data centers, a move that aims to significantly boost AI capabilities and reduce costs. This collaboration includes a major chip purchase and stock warrants, signaling a strong commitment to the future of artificial intelligence. 

OpenAI, a leading artificial intelligence research laboratory, has announced a multibillion-dollar partnership with Advanced Micro Devices (AMD), a renowned chip designer. This collaboration is designed to develop state-of-the-art AI data centers powered by AMD processors, as detailed in a press release on October 6.

The partnership marks a significant step in building the computational capacity necessary to unlock AI's full potential. OpenAI's co-founder and CEO, Sam Altman, emphasized the importance of this collaboration: “This partnership is a major step in building the compute capacity needed to realize AI’s full potential. AMD’s leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster.”

Under the terms of the agreement, OpenAI has committed to purchasing 6 gigawatts worth of AMD chips, starting with the MI450 chip in the coming year. These chips will be acquired either directly from AMD or through OpenAI’s cloud computing partners. The Wall Street Journal reported that this deal is designed to ensure a steady supply of high-performance chips to meet the growing demand for AI computing.

To further solidify the partnership, AMD has issued OpenAI a warrant for up to 160 million shares of AMD common stock. These shares will vest as specific milestones are achieved, with the first tranche vesting upon the initial 1-gigawatt MI450 chip deployment. Additional tranches will vest as OpenAI's purchases scale up to 6 gigawatts. The vesting is also tied to AMD achieving certain share-price targets and OpenAI reaching technical and commercial milestones to enable large-scale deployments.

This partnership comes at a time when the demand for inference computing has surged, driven by the rise of large language models like ChatGPT. Inference computing involves applying a trained model to new inputs in real time, a constant and resource-intensive process. Altman highlighted the challenges of securing sufficient computing power: “It’s hard to overstate how difficult it’s become to get sufficient computing power. We want it super fast, but it takes some time.”

The financial implications of this deal are substantial. AMD CEO Lisa Su stated that the partnership is expected to generate tens of billions of dollars in new revenue for AMD over the next half-decade. This aligns with the broader trend of companies investing heavily in AI infrastructure. For instance, Nvidia recently pledged up to $100 billion to OpenAI, a deal that, if realized, would be the largest private company investment on record.

The collaboration between OpenAI and AMD is a strategic move that benefits both parties. It ensures that OpenAI has the necessary computational resources to support its AI initiatives, while AMD gains a significant customer and a stake in the success of AI technology. As Su noted, “It’s a win for both of our companies, and I’m glad that OpenAI’s incentives are tied to AMD’s success and vice-versa.”

In summary, the partnership between OpenAI and AMD is a pivotal development in the AI industry. It addresses the growing demand for high-performance computing and positions both companies to play a crucial role in the future of artificial intelligence. 

Frequently Asked Questions (FAQS): 

Q: What is the main goal of the partnership between OpenAI and AMD?

A: The main goal of the partnership is to develop advanced AI data centers powered by AMD processors, which will help build the computational capacity needed to realize AI’s full potential.

Q: How many gigawatts worth of AMD chips is OpenAI committing to purchase?

A: OpenAI has committed to purchasing 6 gigawatts worth of AMD chips, starting with the MI450 chip in the coming year.

Q: What is inference computing, and why is it important for AI?

A: Inference computing involves applying a trained model to new inputs in real time. It is crucial for AI because it enables the continuous and real-time application of AI models, which is essential for maintaining the performance of tools like ChatGPT.

Q: What financial benefits does AMD expect from this partnership?

A: AMD expects the partnership to generate tens of billions of dollars in new revenue over the next half-decade, as well as a significant customer and a stake in the success of AI technology.

Q: What is the role of stock warrants in this deal?

A: AMD has issued OpenAI a warrant for up to 160 million shares of AMD common stock. These shares will vest as specific milestones are achieved, ensuring that both companies are aligned in their goals and success. 

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