Semiconductor maker AMD will supply its chips to ChatGPT maker OpenAI as part of an agreement to team up on building artificial intelligence infrastructure, the companies said Monday.
According to a joint statement announcing the deal, AMD will provide OpenAI with the latest version of its high performance graphics chips expected to debut next year.
It calls for supplying 6 gigawatts of computing power for OpenAI’s “next generation” AI infrastructure, with the first gigawatt coming online in the second half of 2026.
AMD also issued OpenAI with a warrant allowing the AI company to buy up to 160 million shares of AMD’s common stock, which amounts to about 10% of company. The warrant will vest based on two milestones tied to the amount of computing power deployed.
“This partnership is a major step in building the compute capacity needed to realize AI’s full potential,” OpenAI CEO Sam Altman, said in a news release. “AMD’s leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster.”
The agreement is a boost for Santa Clara, Calif.-based AMD, which has been left behind by rival Nvidia. The AI boom has fuelled demand for Nvidia's graphics processing chips, sending its shares soaring and making it the world's most valuable company.