OpenAI signs multibillion-dollar deal with AMD for 10% ownership stake

OpenAI has signed a multibillion-dollar agreement with AMD that could hand Sam Altman’s company a 10% ownership stake in the chipmaker, according to a press announcement ￰0￱ news sent AMD stock soaring over 25% in premarket trading, as Wall Street reacted to what’s shaping up to be one of the largest AI chip deployment deals ever ￰1￱ deal centers on a massive rollout of AMD’s Instinct GPUs, with OpenAI committing to deploy 6 gigawatts of compute over the next several years, starting with 1 gigawatt in the second half of ￰2￱ return, AMD is giving OpenAI a warrant to purchase up to 160 million shares of its common stock. That’s the key to the 10% stake, and OpenAI doesn’t get it all at ￰3￱ chunk of stock becomes available only after specific rollout and pricing milestones are ￰4￱ first tranche unlocks once OpenAI completes the first full gigawatt ￰5￱ expands GPU network as part of trillion-dollar infrastructure race Sam said the deal would help OpenAI speed up its AI work and bring more products to the world faster.

“AMD’s leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster,” he said in a joint ￰6￱ announcement comes just two weeks after OpenAI signed a $100 billion equity and chip supply deal with Nvidia, where Nvidia took an ownership stake in ￰7￱ Nvidia agreement covered 10 gigawatts of the company’s growing infrastructure needs. Now, with AMD covering another 6, OpenAI is moving closer to its 23-gigawatt infrastructure ￰8￱ the $50 billion cost per gigawatt, these two deals alone amount to roughly $1 trillion in committed infrastructure spending within 14 ￰9￱ news also caused Nvidia shares to dip 1% in Monday’s ￰10￱ new balance between chip vendors is part of OpenAI’s strategy to avoid dependence on a single ￰11￱ has also opened discussions with Broadcom to develop custom chips for future models, while Oracle continues to provide data center ￰12￱ and Broadcom are supplying the hardware, while OpenAI creates the ￰13￱ is not just selling chips; it’s also financing the purchase of its own chips by investing in the companies that buy them.

It’s a loop of capital , chips, and contracts, and it’s getting tighter by the ￰14￱ uses AMD deal to scale Stargate data center expansion This AMD deal also reinforces OpenAI’s broader Stargate infrastructure project, which has already launched its first data center in Abilene, ￰15￱ site is powered by Nvidia chips for now, but construction is ongoing to scale ￰16￱ builds in New Mexico, Ohio, and other Midwest states are expected to feature a mix of chip suppliers, including ￰17￱ Lisa Su, the CEO of AMD, the deal is both a validation of the company’s Instinct chip roadmap and a serious commercial win after years of trailing Nvidia in the AI accelerator race.

“A true win-win enabling the world’s most ambitious AI buildout and advancing the entire AI ecosystem,” Lisa ￰18￱ OpenAI unlocks the full warrant, it becomes one of AMD’s biggest shareholders, tying its success to the chipmaker’s performance and vice ￰19￱ there’s no fixed dollar figure ￰20￱ only said the deal is worth billions, without giving ￰21￱ seen where it ￰22￱ in Cryptopolitan Research and reach crypto’s sharpest investors and builders.