OpenAI partners with new semiconductor company
In this DML Report…
Advanced Micro Devices Inc., a leading U.S. semiconductor company, announced a major partnership with OpenAI on Monday to bolster AI computing infrastructure. The agreement positions the deal as a win-win arrangement, facilitating very large-scale AI deployments and advancing the broader ecosystem. Under the terms, AMD will supply sufficient graphics processing units (GPUs)—specialized chips that perform complex calculations rapidly and excel in training AI models—to deliver 6 gigawatts of computing power for OpenAI's next-generation AI systems.
The partnership includes AMD's upcoming MI450 chips, its next-generation GPU model, as a key component. Financially, AMD shares rose more than 35 percent as of 8:30 a.m. ET in premarket trading on Monday. The collaboration is projected to generate tens of billions of dollars in revenue for AMD, and the company issued OpenAI a warrant for up to 160 million shares of AMD common stock, which will vest upon achieving specified milestones. AMD Chief Financial Officer Jean Hu stated, "Our partnership with OpenAI is expected to deliver tens of billions of dollars in revenue for AMD while accelerating OpenAI’s AI infrastructure buildout."
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The first phase of the deal is scheduled to commence in the second half of 2026, with OpenAI deploying 1 gigawatt of AMD's MI450 chips. This initiative will expedite OpenAI's expansion of AI infrastructure, supporting sustained growth in high-performance computing demands.