In an impactful move for the tech industry, AMD has announced a substantial multi-year partnership with OpenAI focused on AI GPU production. Although specific quantities of GPUs involved are not mentioned, the deal suggests OpenAI may utilize a total of 6 gigawatts worth of AMD’s cutting-edge Instinct GPUs. Additionally, OpenAI plans to potentially acquire a 10% stake in AMD, providing a substantial investment expected to be around $26 billion if the project reaches full capacity.

The initial phase will see OpenAI start procuring 1 gigawatt of AMD’s next-gen Instinct MI450 AI GPUs beginning in the latter half of next year. Should the arrangement proceed as anticipated, it could mark the first major win for AMD in the AI GPU sector, positioning their offerings as direct competitors to Nvidia’s products.

Overall, this collaboration appears poised to significantly benefit AMD, potentially enabling further innovations in gaming and AI technologies.