Summary:
1. OpenAI has signed a new deal with AMD to obtain 6GW worth of Instinct GPUs for powering future AI infrastructure.
2. AMD becomes a core strategic compute partner, supplying rack-scale AI systems and future GPU generations.
3. OpenAI also partnered with Nvidia and Oracle to meet its target capacity of 23GW, estimating a total spend of over $1 trillion.
Article:
OpenAI recently announced a significant partnership with AMD, marking a new chapter in its quest for advanced AI capabilities. The agreement entails OpenAI acquiring 6GW worth of AMD’s Instinct GPUs, with the first 1GW set to be deployed in the latter half of 2026. These cutting-edge chips, built on AMD’s Instinct MI450, will play a crucial role in powering OpenAI’s future AI infrastructure.
As part of the collaboration, AMD will serve as a key strategic compute partner, supplying rack-scale AI systems and collaborating on a co-optimized hardware and software roadmap. This partnership builds upon their existing relationship, which began with the MI300X and continued with the MI350X series. Additionally, AMD has issued OpenAI a warrant for up to 160 million AMD common shares, potentially giving OpenAI a 10% stake in the chipmaker.
Dr. Lisa Su, chair and CEO of AMD, expressed enthusiasm about the partnership, highlighting the potential for delivering AI compute at a massive scale. OpenAI’s co-founder and CEO, Sam Altman, echoed this sentiment, emphasizing the importance of AMD’s high-performance chips in accelerating progress and democratizing advanced AI technologies.
This collaboration with AMD comes on the heels of OpenAI’s strategic partnership with Nvidia, where it plans to deploy at least 10GW of Nvidia systems for its AI infrastructure. With the company’s ambitious goal of reaching 23GW of new compute capacity, additional agreements with companies like Oracle have been made to lease computing power. However, achieving this target comes with a hefty price tag, estimated to exceed $1 trillion, posing a financial challenge for a company still operating at a loss.
In conclusion, OpenAI’s partnerships with industry giants like AMD, Nvidia, and Oracle signify a significant investment in advancing AI capabilities. Despite the substantial costs involved, these collaborations are vital for OpenAI to achieve its goal of democratizing AI and pushing the boundaries of technological innovation.
