OpenAI has signed a major agreement with Advanced Micro Devices (AMD) to deploy 6 gigawatts of AMD’s graphics processing units over several years for AI infrastructure.

The deal, valued in the tens of billions of dollars, gives AMD an opportunity to compete more directly with Nvidia in the AI chip market.

OpenAI will also have the option to acquire up to 160 million AMD shares at a nominal price if certain project milestones are met, potentially amounting to about 10% of AMD’s outstanding stock.

The agreement is just over half the size of a similar pact OpenAI recently made with Nvidia.

Following the announcement, AMD shares rose as much as 38%, marking their largest single-day jump since 2016.

This move is part of OpenAI’s broader push to increase data center capacity amid strong demand for AI computing.

🔗 Source: Bloomberg

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