“Excited to partner with AMD to use their chips to serve our users!” Sam Altman on new multibillion-dollar deal

Sam Altman-led OpenAI and chip-designer Advanced Micro Devices (AMD) on Monday, October 6, announced a multibillion-dollar partnership to build infrastructure to meet the world’s growing Artificial Intelligence (AI) demands.

Sam Altman announces multibillion-dollar partnership 

“Excited to partner with AMD to use their chips to serve our users!” Altman announced on social media. 

“This is all incremental to our work with NVIDIA (and we plan to increase our NVIDIA purchasing over time),” he wrote on X.

“The world needs much more compute…,” he added.

OpenAI will begin by deploying 1 gigawatt of AMD Instinct MI450 GPUs in the second half of 2026.

As part of the "multi-year, multi-generation agreement" partnership, OpenAI data centres will use AMD's processors, which are in turn expected to generate "tens of billions of dollars" in revenue for AMD. 

OpenAI has committed to purchase six gigawatts worth of AMD’s chips, including the MI450 chip, either directly or through its cloud computing partners, the Wall Street Journal reported.

Excited to partner with AMD to use their chips to serve our users!

This is all incremental to our work with NVIDIA (and we plan to increase our NVIDIA purchasing over time).

The world needs much more compute...

— Sam Altman (@sama) October 6, 2025

Could new deal challenge Nvidia's AI chip lead?

This comes weeks after OpenAI signed a letter of intent with Nvidia to deploy up to 10 gigawatts of AI infrastructure and potentially secure a $100 billion investment from them.

While Nvidia remains OpenAI’s “preferred strategic compute and networking partner,” AMD has now been designated a “core strategic compute partner.”

As part of the deal, OpenAI can acquire up to 160 million AMD shares, approximately a 10 per cent stake at a nominal price, depending on performance milestones.

“This partnership is a major step in building the compute capacity needed to realise AI’s full potential,” said OpenAI CEO Sam Altman. 

AMD’s Lisa Su called it a “win-win” that could speed up the global AI buildout.

Also read: 'Grok will make a watchable movie before the end of next year and really good movies in 2027,' says Elon Musk (startuppedia.in)