Overview
- OpenAI agreed to procure up to six gigawatts of AMD Instinct capacity over multiple years, beginning with a one‑gigawatt MI450 tranche scheduled for the second half of 2026.
- AMD granted OpenAI warrants for up to 160 million shares at $0.01 each, vesting in tranches tied to chip deliveries and share‑price targets reportedly rising to $600.
- AMD executives projected multiple tens of billions of dollars in revenue from the pact, and the stock jumped roughly 25% to 35% to record levels on the news.
- The AMD deal complements OpenAI’s recently announced 10‑gigawatt arrangement with Nvidia, reflecting a deliberate move to split training and inference across vendors.
- Deployment timelines hinge on access to electricity and data‑center capacity, with AMD noting installations will proceed as power becomes available, including projects like OpenAI’s gas‑powered Abilene, Texas site.