OpenAI Plans $60B Partnership With AMD Challenging Nvidia AI Chip Dominance

OpenAI has announced a major multibillion-dollar partnership with AMD to supply six gigawatts of AI chips, starting with a one-gigawatt deployment of AMD Instinct MI450 GPUs in 2026, supporting OpenAI's expansion of data centers and AI infrastructure. This deal includes AMD granting OpenAI warrants to purchase up to 160 million shares, potentially representing a 10 percent stake, contingent on milestone achievements and share price targets. The partnership challenges Nvidia's dominance in the AI chip market, as OpenAI had recently secured a $100 billion deal with Nvidia, signaling OpenAI's strategy to diversify its chip suppliers amid surging AI computing demand. AMD expects the agreement to generate tens of billions of dollars in revenue, marking a significant win for the company and advancing AI development globally. OpenAI's CEO Sam Altman emphasized that the collaboration is crucial to building the compute capacity needed to fulfill AI's potential, while AMD's CEO Lisa Su highlighted the partnership as a "win-win" boosting the AI ecosystem. This development underscores the intense competition and massive investments shaping the future of artificial intelligence technology.