OpenAI agrees to buy 'tens of billions' worth of AMD chips

Core Insights - OpenAI has entered into a strategic partnership with AMD to utilize its chips for creating six gigawatts of AI infrastructure, with AMD expecting to generate "tens of billions of dollars" from this deal [1][2] - OpenAI will deploy AMD's Instinct MI450 GPUs, with the first gigawatt expected to be operational in the second half of 2026 [2] - The agreement allows OpenAI to purchase 160 million AMD shares at a nominal price, potentially giving OpenAI up to a 10 percent stake in AMD as milestones are achieved [3] Company Agreements - OpenAI's collaboration with AMD follows a recent deal with NVIDIA, where OpenAI plans to use NVIDIA's chips for at least 10 gigawatts of AI data centers, supported by a $100 billion investment [4] - OpenAI is also collaborating with Microsoft, which has invested over $13 billion for a 49 percent share of OpenAI's profits [5] - NVIDIA has invested $5 billion in Intel to integrate its AI capabilities with Intel's CPU technologies, further enhancing AI infrastructure [5]