AMD has signed a long-term supply deal with OpenAI to deliver multiple generations of its Instinct chips. The agreement covers up to six gigawatts of compute power and includes a stock warrant that could give OpenAI up to a ten percent stake in AMD.
The partnership, announced on October 6, 2025, makes AMD the primary supplier of GPUs for OpenAI's future AI infrastructure. Over several years, AMD will deliver GPUs with a combined capacity of six gigawatts. The rollout will start with a one-gigawatt cluster based on the new Instinct MI450 series, set to go online in the second half of 2026.
According to AMD, the deal establishes a multi-generation partnership focused on Instinct GPUs and "rack-scale AI solutions," building on joint engineering work that began with the MI300X and will continue in future chip lines.
For OpenAI, this marks the first large-scale use of AMD hardware. For AMD, it's a major strategic move against Nvidia, the current market leader. AMD has struggled for years to catch up, facing software and networking issues.
OpenAI gets option for up to ten percent of AMD
Reuters reports that the contract includes an unusually large incentive: OpenAI receives a warrant to buy up to 160 million AMD shares at just one cent per share - about ten percent of the company. Vesting is tied to technical milestones, such as launching the first gigawatt cluster, and stock price targets up to $600 per share.
AMD currently has about 1.62 billion shares outstanding and a market cap of roughly $267 billion. After the deal was announced, AMD shares rose more than 23 percent in premarket trading.
The agreement also includes a framework for jointly defining technical and commercial goals, aiming to align software integration and AMD's future product roadmap.
Competing and parallel chip strategies
According to Reuters, the partnership does not change OpenAI's broader compute strategy. OpenAI will continue collaborating with Nvidia and Broadcom on custom chips and maintains a close partnership with Microsoft. In September 2025, Nvidia announced up to $100 billion in new investments for OpenAI, including a commitment to deliver ten gigawatts of its upcoming Vera Rubin systems.
After the AMD deal was announced, Sam Altman said the agreement is in addition to our collaboration with Nvidia, and that OpenAI plans to keep increasing Nvidia purchases. Altman said, "The world needs much more compute..."
