OpenAI Names AMD Core Compute Partner, 6GW Deal

OpenAI and AMD announced a multiyear, multi‑generation partnership under which OpenAI will deploy up to 6 gigawatts of AMD Instinct GPUs, beginning with a 1‑gigawatt rollout of MI450 chips in the second half of 2026. AMD issued OpenAI warrants for up to 160 million shares that vest in tranches tied to deployment, commercial and share‑price milestones (previous reports indicated a $0.01 strike), which could represent roughly a 10% stake at certain valuations. The collaboration designates AMD as a core compute partner and includes joint hardware and software work and rack‑scale AI solutions to align roadmaps and optimize performance. AMD executives say the pact could generate "tens of billions" in revenue, and AMD shares surged sharply in premarket trading (reported roughly 24–35%). The agreement is intended to secure large‑scale compute capacity and diversify OpenAI’s suppliers, intensifying competition with market leader Nvidia.