OpenAI and AMD partner to build AI infrastructure
On Oct. 6, 2025 OpenAI and chipmaker AMD announced a partnership under which AMD will supply its next‑generation Instinct MI450 accelerators and deliver up to 6 gigawatts of computing power for OpenAI’s next‑generation AI infrastructure, with an initial 1‑gigawatt shipment slated for the second half of 2026. The deal includes a warrant allowing OpenAI to acquire up to 160 million AMD shares (about 10% of AMD’s outstanding stock) that vests on deployment and share‑price milestones; AMD shares jumped ~25% on the news while Nvidia shares dipped slightly.
📌 Key Facts
- AMD will sell OpenAI its Instinct MI450 high‑performance chips; first batch (1 GW) to be deployed in H2 2026, total commitment 6 GW.
- OpenAI received a warrant to buy up to 160 million AMD shares — roughly 10% of AMD’s 1.6 billion outstanding shares — vesting tied to compute‑deployment and share‑price milestones.
- Market reaction: AMD stock rose about 25% premarket after the announcement; Nvidia shares fell slightly despite OpenAI’s concurrent ties with Nvidia.
📊 Analysis & Commentary (1)
"The editorial comments on and contextualizes the OpenAI‑AMD chip deal reported in 'OpenAI and AMD partner to build AI infrastructure,' framing it as evidence of an accelerating AI 'arms race' where securing vast chip and data‑center capacity is now central to competitive advantage."