OpenAI has signed a new chip purchase agreement with AMD valued at tens of billions of dollars to meet its rapidly growing demand for processing power in the field of Artificial Intelligence (AI).
The most striking clause of the agreement is that OpenAI will acquire the right to own a 10 percent share in AMD, which currently boasts a market value of approximately $270 billion.
The San Francisco-based AI giant will purchase chips corresponding to a total capacity of 6 gigawatts from AMD. OpenAI executives noted that implementing 1 gigawatt of power costs around $50 billion, with two-thirds of that amount spent on the chips and the remainder on infrastructure.
This agreement comes just two weeks after NVIDIA announced its $100 billion investment plan for OpenAI. This new partnership has the potential to reshape the balance of power among the leading players in the sector. Following the news release, AMD shares rose by 15 percent in pre-market trading.
The deal also includes OpenAI's commitment to purchase AMD's MI450 processors, which are expected to be launched next year. The MI450 stands out as one of the most advanced AI chips set to compete directly with NVIDIA's Blackwell series. Sources close to the matter indicate that OpenAI has been working with AMD in recent weeks to finalize the technical specifications of these chips.
Jean Hu, AMD's Chief Financial Officer (CFO), stated that this collaboration creates "significant strategic alignment for both companies." Meanwhile, OpenAI CEO Sam Altman hailed the partnership as "a major step toward building the necessary processing power to unlock the true potential of Artificial Intelligence."
