OpenAI, known for ChatGPT, has signed a major deal with Advanced Micro Devices (AMD) to purchase millions of Instinct GPU chips. This commitment, representing 6 gigawatts of computing power, aims to strengthen OpenAI’s infrastructure for developing and deploying its AI models.
The Yiaho team analyzed the implications of this contract.
OpenAI and AMD: A major agreement
Announced on October 6, 2025, the partnership covers the purchase of Instinct GPU chips, including the MI450 series, with an initial rollout of 1 gigawatt planned for mid-2026. Designed for training and inference of AI models, these chips offer high memory and bandwidth, ideal for massive computations.
The multi-year contract includes technical collaboration between OpenAI and AMD to optimize chip performance and the ROCm software stack, aligned with the needs of AI labs.
This purchase is part of a broader OpenAI strategy, which aims to secure 23 gigawatts for its data centers. The 6 gigawatts allocated to AMD represent a significant share, although the company continues its collaboration with NVIDIA, the market leader in AI GPUs.
More billions of dollars for AI
The announcement had an immediate effect on the markets: AMD’s share price rose 23% on October 6, climbing from around $164 to over $220.
According to estimates, this contract could generate $100 billion in revenue for AMD over four years, strengthening its position against NVIDIA. In addition, AMD issued a warrant allowing OpenAI to acquire up to 160 million shares (about 10% of the company), subject to performance conditions and deployment milestones.
For OpenAI, this investment fits into a costly roadmap: each gigawatt of data center capacity represents about $50 billion in infrastructure. With an overall target of 23 gigawatts, total spending could reach unprecedented levels, funded by OpenAI’s growing revenues (subscriptions, partnerships) and external backing, such as Microsoft’s.
Also read on this topic: OpenAI wants to produce its own chips to challenge Nvidia’s dominance
And NVIDIA?
By diversifying its suppliers, OpenAI reduces the risks tied to dependence on NVIDIA, while also boosting competition in the semiconductor sector. For AMD, this contract validates its technological progress, especially with the Instinct series, and strengthens its credibility with major AI players.
But tensions in global supply chains, although eased by the fact that AMD and NVIDIA are American, remain a factor to watch. This deal could encourage other companies, such as Anthropic or Google DeepMind, to explore alternatives to NVIDIA, shifting the market balance.
