The AI arms race turned a new page on Monday, as OpenAI and chipmaker Advanced Micro Devices (AMD) announced that the two have agreed to a new partnership to create new data centers powered by AMD’s chips. The deal could also see OpenAI take a roughly 10% stake in AMD.

Specifically, the partnership sees OpenAI committing to buying 6 gigawatts of AMD GPU chips, with the initial gigawatt deployment scheduled for the second half of 2026. The deal will ultimately see OpenAI deploy the remaining gigawatts over multiple years and multiple hardware generations.

The deal also sees AMD issuing a warrant for as many as 160 million shares of AMD stock to OpenAI. Those shares are structured to vest in the event that “specific milestones are achieved,” the company said.

The deal was a hit on Wall St

See Full Page