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OpenAI Teams With AMD to Develop AI Data Centers
PYMNTS.comยท 2025-10-06 14:05
Core Insights - OpenAI has initiated a multibillion-dollar partnership with AMD to develop AI data centers utilizing AMD processors, which is expected to enhance AI's computational capacity significantly [2][4] - OpenAI plans to purchase 6 gigawatts of AMD chips, starting with the MI450 chip in the upcoming year, indicating a substantial commitment to AMD's technology [2][3] - AMD has issued OpenAI a warrant for up to 160 million shares of common stock, with vesting tied to specific milestones related to chip deployment and share-price targets [3][4] Company Collaboration - The partnership is seen as a strategic move to bolster AI infrastructure, with both companies benefiting from shared incentives [6] - AMD's CEO has projected that this deal could generate tens of billions of dollars in new revenue for AMD over the next five years, highlighting the financial implications of the collaboration [4] - OpenAI's CEO emphasized the increasing demand for inference computing, which is critical for real-time AI applications, further underscoring the necessity of this partnership [5]