Advanced Micro Devices to Supply OpenAI AI Chips

AMD announced a multi-year deal to supply artificial intelligence chips to OpenAI, a move expected to generate tens of billions of dollars in annual revenue for AMD and over $100 billion in new revenue over four years from OpenAI and other customers. As part of the agreement, AMD issued a warrant allowing OpenAI to purchase up to 160 million AMD shares for 1 cent each, vesting based on milestones. This deal is seen as a major endorsement of AMD' AI chips and software, positioning it as a stronger competitor to Nvidia. OpenAI, led by Sam Altman, aims to build a one-gigawatt facility based on AMD' MI450 series chips starting next year, diversifying its chip supply beyond Nvidia. OpenAI has also partnered with Broadcom for in-house chip development and is backed by Microsoft.