Article Body
Advanced Micro Devices surged 23% in early trading Monday after unveiling a multi-year accord to supply OpenAI with graphics processors capable of delivering six gigawatts of artificial-intelligence compute capacity, a pact that could funnel tens of billions of dollars to the chipmaker.
Under the agreement, AMD will begin deploying hundreds of thousands of its Instinct accelerators in the second half of 2026, starting with an initial one-gigawatt installation. The companies also formalized a performance-linked warrant that could grant OpenAI ownership of up to 160 million AMD shares—roughly a 10% stake—once agreed deployment and performance targets are met.
"This partnership is a major step in building the compute capacity needed to realize AI's full potential," OpenAI Chief Executive Sam Altman said.
AMD Chief Executive Lisa Su added that the collaboration "will deliver AI compute at massive scale."
The transaction comes barely a month after OpenAI committed to purchase 10 gigawatts of systems from Nvidia, whose CUDA software stack remains the industry default. Analysts interpreted the AMD accord as validation of the company’s Instinct line, while noting that Nvidia’s technology still commands the broader developer ecosystem.
AMD’s ROCm open software platform continues to trail Nvidia’s CUDA in both adoption and stability, according to industry assessments. The two firms said they will jointly refine hardware-software integration to narrow that gap.
Nvidia shares slipped 1% on the announcement. OpenAI signaled plans to scale beyond the initial six gigawatts in the coming years as demand for training and inference workloads grows.
Comments