OpenAI Partnership with AMD for Advanced AI Computing Power

OpenAI is collaborating with AMD to enhance the availability of computing resources necessary for its artificial intelligence models. This significant agreement, revealed on Monday, will involve OpenAI utilising 6 gigawatts of GPUs, with the initial phase employing AMD’s Instinct MI450 chips expected to kick off in the latter half of 2026.

Motivation Behind the Collaboration

Greg Brockman, President of OpenAI, discussed the rationale for this collaboration, highlighting the escalating global need for AI infrastructure. He mentioned that there is a pressing requirement for maximal computing power, as the industry is striving to adapt to the rising demand for AI services anticipated in the coming years. He conveyed this during a conversation with CNBC.

Access to Personal GPUs for Users

Brockman has previously indicated that OpenAI aspires to eventually grant each user access to their own GPU, a target that necessitates a substantial increase in computing resources.

Concerns About Computing Scarcity

Brockman explained that the industry is on the verge of a computing scarcity due to immense demand for AI services, not only from OpenAI but the entire ecosystem. He stated the importance of the industry unifying to prepare for this coming “compute desert.”

OpenAI’s Ongoing Need for More Computing Power

This announcement coincides with numerous comments from OpenAI executives regarding the urgent requirement for additional computing resources. CFO Sarah Friar pointed out that being “constantly under compute” poses the greatest challenge for the company.

Building Capacity for AI Development

Sam Altman, CEO of OpenAI, expressed that this partnership represents a crucial advancement in establishing the computing capacity essential for realising the complete potential of AI. According to him, AMD’s expertise in high-performance chips will facilitate accelerated progress, enabling advanced AI benefits to reach a wider audience more rapidly.

Collaboration with Nvidia and AMD

Brockman mentioned that while OpenAI maintains a robust partnership with Nvidia, collaborating with AMD is vital for enhancing additional computing capacity. Nvidia recently revealed plans to invest up to $100 billion in OpenAI.

The Importance of Next-Gen Chips

Brockman acknowledged Nvidia’s unique contributions, stating their role in training and inference processes. He also noted that AMD is making significant strides with its next-generation chips.

Details of the Agreement

Under the new agreement, AMD has provided OpenAI a warrant for up to 160 million shares of AMD common stock, conditional upon achieving performance milestones. Lisa Su, CEO of AMD, remarked that this arrangement underscores the long-term vision of the partnership.

The Financial Impact of Compute Deployment

Su explained that the deployment of computing resources by OpenAI would bring considerable advantages to AMD, resulting in significant revenue growth. She noted that every gigawatt of compute translates into substantial revenue gains.

Following the announcement, AMD shares experienced a surge of over 38 percent during early trading on Monday.