AMD and OpenAI Seal Multi-Year Deal for Next-Gen Chips

AMD Taps OpenAI for Next-Gen Chips in Multi-Year Agreement

Written by Aaron S.,

Editor-In-Chief

Last Updated: October 06, 2025

Key Takeaways

AMD will supply OpenAI with 6 gigawatts of computing power, using its new MI450 chips designed for advanced AI workloads;
The MI450 is expected to outperform Nvidia’s Rubin CPX, with improvements developed jointly by AMD and OpenAI;
OpenAI can acquire up to 160 million AMD shares, tied to capacity delivery and AMD’s stock hitting a $600 target.

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AMD has reached a long-term deal with OpenAI to deliver a large amount of computing capacity over several product generations.

The agreement includes the supply of up to 6 gigawatts of processing capability, which AMD estimates is equal to the energy usage of roughly 4.5 million homes.

The delivery will occur in stages and is expected to begin in the second half of 2026, which coincides with the launch of AMD's upcoming Instinct MI450 chips. These chips will be the first to support OpenAI’s growing infrastructure under this partnership.

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AMD stated that the MI450 will offer better performance than Nvidia’s Rubin CPX GPUs. These updates are being developed with OpenAI’s help.

AMD’s current Instinct MI355X and MI300X chips, which already support some of OpenAI’s tasks, are known for handling large-scale AI models effectively due to their strong memory features and data transfer speed.

As part of the deal, OpenAI can choose to purchase up to 160 million shares of AMD’s stock, approximately 10% of the company. These shares will be issued in stages.

The first portion will be available when the initial 1 gigawatt of capacity is delivered, and more will follow as OpenAI increases its purchase to the full 6 gigawatts. The final portion of shares can only be acquired if AMD’s share price hits $600.

Recently, OpenAI and NVIDIA announced plans to collaborate on developing new AI systems powered by NVIDIA hardware. How? Read the full story.