OpenAI, the pioneering firm behind ChatGPT, has taken a decisive step to secure its computational future by signing a multibillion-dollar deal with chipmaker AMD. This strategic agreement directly addresses the company’s biggest growth constraint—access to advanced computing power—and solidifies its infrastructure for developing increasingly sophisticated artificial intelligence.
The partnership provides OpenAI with a massive pipeline of critical hardware, including hundreds of thousands of AMD’s high-performance AI chips. These GPUs are the engines of modern AI, and the deal ensures OpenAI will have the necessary resources to continue its race toward artificial general intelligence. The deployment of these chips is set to begin in the second half of 2026, marking a new phase of expansion for the AI leader.
In a move that underscores the depth of the alliance, AMD has granted OpenAI a warrant to purchase up to 160 million of its shares for just one cent each. This gives OpenAI the potential to acquire a 10% stake in the chipmaker, transforming a simple customer-supplier relationship into a deeply vested partnership. This arrangement aligns the long-term interests of both companies as they navigate the rapidly evolving AI landscape.
Sam Altman, the CEO of OpenAI, has repeatedly emphasized that access to chips is the primary limiting factor for his company’s ambitions. This deal with AMD, alongside a recent investment announcement from Nvidia, demonstrates a relentless and well-funded strategy to overcome this hurdle. The scale is immense, with the deal covering six gigawatts of power, enough to power millions of homes.
While the financial commitment is enormous, questions remain about how OpenAI will fund the acquisition. Valued at around $500 billion, the company generated $4.3 billion in revenue in the first half of 2025 but also burned through $2.5 billion in the same period. This aggressive spending on talent and infrastructure highlights the high-stakes nature of the AI race.