OpenAI to invest billions in AMD chips and take 10% stake amid AI compute shortage

OpenAI will purchase tens of billions of dollars in AMD chips and could acquire a 10% stake in the semiconductor company, spreading its supply chain beyond Nvidia in pursuit of artificial intelligence (AI) computing power.

The Monday announcement sent AMD shares soaring 23.7% to $203.71. OpenAI is committed to deploying 6 gigawatts of AMD graphics processors over several years, starting with the new Instinct MI450 chips in late 2026.

“It’s hard to overstate how difficult it’s become” to get enough computing power, OpenAI CEO Sam Altman said. “We want it super fast, but it takes some time.”

The deal grants OpenAI warrants to purchase 160 million AMD shares at $0.01 each. That’s roughly 10% of the chipmaker if fully exercised. OpenAI earns these shares by hitting deployment milestones and helping AMD reach certain stock price targets.

This partnership arrives just weeks after OpenAI signed a $100 billion agreement with Nvidia. Rather than replacing Nvidia, OpenAI appears to be spreading its bets across multiple suppliers as demand for AI services explodes.

“We are in a phase of the build-out where the entire industry’s got to come together and everybody’s going to do super well,” Altman explained. “You’ll see this on chips. You’ll see this on data centers.”

AMD CEO Lisa Su called the partnership validation of her company’s technology roadmap. “This partnership brings the best of AMD and OpenAI together to create a true win-win enabling the world’s most ambitious AI buildout and advancing the entire AI ecosystem,” said Su.

“Our partnership with OpenAI is expected to deliver tens of billions of dollars in revenue for AMD while accelerating OpenAI’s AI infrastructure buildout,” added CFO Jean Hu.

The warrant structure creates an unusual circular relationship. OpenAI gets equity in its supplier while AMD ties its success to its biggest AI customer. Su acknowledged the creative financing, saying, “I wouldn’t say it came lightly.”

Greg Brockman, OpenAI’s president, revealed the company already delays features in ChatGPT due to computing shortages. “Building the future of AI requires deep collaboration across every layer of the stack,” he said.

Barclays analyst Tom O’Malley views the deal as evidence of desperate demand for computing power, rather than a direct challenge to Nvidia. The ecosystem needs every available chip to meet AI’s growing appetite.

OpenAI’s first gigawatt deployment is scheduled to begin in the second half of 2026 at its Stargate facility in Abilene, Texas. Future sites in New Mexico, Ohio, and the Midwest will feature a mix of suppliers, including AMD.

The partnership strengthens AMD’s position after years of trailing Nvidia in the AI chip market. While Nvidia controls over 70% of the AI chip market, AMD now has a flagship customer at the center of the generative AI boom.