AMD will supply up to 6 gigawatts of GPUs to the OpenAI over several years. The first 1 gigawatt deployment of AMD Instinct MI450 GPUs is set to begin in the second half of 2026.
The deal should generate tens of billions of dollars in revenue for AMD over the next few years. The deal would be $120 billion if it was $20 billion per gigawatt of GPUs.
This follows the Nvidia’s (NVDA) $100 billion deal with OpenAI. Nvidia invested $10 billion in OpenAI and has the option to invest $90 billion more in $10 billion chunks.. Nvidia has also announced a $5 billion investment in Intel (INTC) to co-develop data centers and PC products.
AMD issued OpenAI warrants for up to 160 million shares which is about 10% of the company. Shares will vest in stages as AMD hits milestones, beginning once the company deploys its first 1 gigawatt of chips.
Critics have worried about the scale of the AI bets could outpace real-world demand and lead to an overcapacity bubble. Su dismissed these fears and argues that there is an underestimation of AI’s transformative potential.
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So they will probably use NVidia for training and AMD for inference.
While the AMD Instinct MI450 Series GPU is unknown at this point, previous Instinct model have been superior to NVidia at least for some benchmarks. AMD thinks the new MI450 will be best for everything.
For training, it seems the ROCm software still lags CUDA.
Good that AMD gets a nice deal. Nvidia is ripping off all others with giant margins, so some competition is not bad to lower the cost.