AMD’s AI Partnership with OpenAI Signals Major Growth Potential
Advanced Micro Devices (AMD) has secured a landmark deal with OpenAI, positioning itself as a key player in the AI hardware race. The agreement involves deploying up to 6 gigawatts of AMD's GPUs for OpenAI's data centers, with the first wave scheduled for 2026. AMD issued warrants for 160 million shares contingent on performance milestones—a deal analysts estimate could generate $90 billion in revenue.
The partnership dwarfs AMD's current data center business, which reported $12.6 billion in 2024 revenue. This strategic MOVE capitalizes on the insatiable demand for AI compute power, with AMD CFO Jean Hu describing the deal as "worth tens of billions." For investors, the collaboration represents a credible challenge to Nvidia's dominance in AI accelerators.
