Recently, OpenAI announced a multi-billion-dollar partnership with AMD, under which AMD will provide 6 gigawatts of computing power to support the inference work of OpenAI's generative AI models. According to the agreement, AMD plans to deploy the first 1 gigawatt of Instinct MI450 GPUs in the second half of 2026.

OpenAI

Image source note: The image is AI-generated, and the licensing service provider is Midjourney

This collaboration makes OpenAI an important computing partner for AMD, and OpenAI will also obtain the right to purchase up to 160 million shares of AMD common stock. According to the performance targets agreed upon by both parties, OpenAI will gradually increase its equity in the 56-year-old chip manufacturer over the next five years. Although OpenAI and AMD have not disclosed the specific amount of the cooperation, this agreement has been warmly welcomed by Wall Street, and AMD's stock rose by more than 34% after the announcement.

This cooperation is one of many deals that OpenAI has recently made with multiple AI hardware suppliers. Last month, OpenAI also signed a $100 billion contract with Nvidia, under which Nvidia will provide 10 gigawatts of computing power for OpenAI. In addition, OpenAI has also signed a $30 billion agreement with Oracle to obtain computing resources through 2030.

Analysts say this collaboration with AMD shows that OpenAI is trying to diversify its computing resources to avoid over-reliance on a single supplier. Jack Gold, an analyst at J. Gold Associates, pointed out that OpenAI needs diversified chip sources to improve product quality.

For AMD, this agreement marks the consolidation of its market position, making it a strong competitor to Nvidia. Gaurav Gupta, an analyst at Gartner, said that although AMD has made some progress in its AI product line, it still faces certain challenges compared to Nvidia, which holds more than 70% of the market share. This collaboration helps enhance AMD's standing in the eyes of investors and potential customers.

The signing of this agreement may lead to increased competition in the AI field, which could bring more favorable pricing conditions for other AI suppliers when they seek computing services. However, OpenAI's profit model in the enterprise AI market remains unclear, and the continuous high investment has brought considerable pressure.

Key points:

🌟 OpenAI has reached a multi-billion-dollar partnership with AMD, under which AMD will provide 6 gigawatts of computing power.

📈 This agreement gives OpenAI the right to purchase AMD shares, promoting the diversification of computing resources.

💼 AMD's market position is consolidated, becoming a strong competitor to Nvidia.