AMD has signed a multi-year contract with OpenAI to supply hundreds of thousands of MI450 graphics processors for artificial intelligence data centers, which could generate over $100 billion in revenue for the manufacturer in the coming years.
This is reported by Business • Media
Details of the Collaboration and Terms of the Agreement
Under the signed agreement, AMD will supply OpenAI with high-performance GPUs with a total power of approximately 6 GW. Deliveries will begin in the second half of 2026. According to the terms of the contract, OpenAI has the right to purchase up to 160 million shares of AMD — nearly 10% of the company’s total equity — at a nominal price of $0.01 per share. This right will be exercised in stages, based on the fulfillment of delivery conditions and achieving capitalization, including a share price that could reach $600.
Following the announcement of the partnership, AMD’s shares surged by 41%, marking the largest single-day increase since 2016. On the Nasdaq exchange, the company’s securities are trading at $206.8, with a market capitalization reaching $336 billion.
Strategic Impact and Market Prospects
AMD’s management predicts that the new partnership with OpenAI will generate tens of billions of dollars in annual revenue, with total revenue over four years potentially exceeding $100 billion, considering related contracts. In comparison, the company’s projected revenue for 2025 is $32.78 billion.
AMD’s Executive Vice President Forrest Norrod described the agreement as “transformational not only for AMD but for the entire AI industry.” He noted that it strengthens the company’s position in the competitive battle with Nvidia.
It is worth noting that in September, Nvidia also signed a contract with OpenAI to supply AI system capacities of 10 GW, but without acquiring equity in the startup.
OpenAI CEO Sam Altman emphasized that collaboration with AMD will help create a scalable infrastructure for developing next-generation artificial intelligence models. At the same time, OpenAI is negotiating with Broadcom and developing its own production of specialized AI chips.
Experts believe that this agreement intensifies competition among high-performance processor manufacturers and indicates OpenAI’s desire to reduce its dependence on Nvidia.
Previously, Huawei announced a three-year strategy to strengthen its position in the AI chip market and compete with Nvidia.