AMD and OpenAI Forge Billions-Dollar AI Chips Partnership

AMD has announced a transformative multi-year agreement to supply artificial intelligence (AI) chips to OpenAI, the company behind ChatGPT. This deal is expected to generate tens of billions of dollars in annual revenue while allowing OpenAI to acquire up to 10% of AMD's shares.

This strategic move positions AMD as a key player in the AI sector, tightening its competition with leading AI chip supplier Nvidia, which recently made significant investments in OpenAI. Analysts see this as a significant endorsement of AMD's AI capabilities, although it is unlikely to immediately challenge Nvidia's market dominance.

The agreement includes the deployment of hundreds of thousands of AMD AI chips starting from 2026, which could meet the energy needs equivalent to 5 million U.S. households. OpenAI's plans to build a one-gigawatt facility based on AMD chips further underscore the increasing demand for AI compute power in the industry.

(With inputs from agencies.)