AMD's Game-Changing AI Chip Deal with OpenAI: A Billion-Dollar Alliance
AMD will supply AI chips to OpenAI in a multi-year deal worth billions annually, offering OpenAI options for a 10% stake in AMD. This strategic partnership, focused on AMD's MI450 chips, is set to reshape industry dynamics and boost both companies' market positions.
AMD announced on Monday a landmark agreement to provide OpenAI with advanced artificial intelligence chips in a multi-year partnership poised to generate tens of billions of dollars in annual revenue. The deal grants OpenAI an option to purchase approximately 10% of the chipmaker's shares, reflecting a major vote of confidence in AMD's capabilities.
This arrangement comes as the AI sector's demand for computing power intensifies, with companies worldwide racing to harness AI technologies that can emulate or surpass human intelligence levels. For OpenAI, this deal represents an opportunity to secure a significant stake in a leading competitor to Nvidia, thereby enhancing its own computing capabilities and market influence.
AMD executives anticipate substantial financial gains, projecting over $100 billion in revenue from OpenAI and other partnerships in the coming years. The collaboration will involve deploying hundreds of thousands of AI chips starting from the second half of 2026, underlining AMD's growing prominence in the AI landscape.
(With inputs from agencies.)
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