AMD, OpenAI sign multiyear AI compute deal with 160M-share warrant

Advanced Micro Devices and OpenAI on Monday announced a multiyear agreement under which AMD will supply the artificial intelligence company with the equivalent of six gigawatts of compute capacity across multiple generations of its Instinct GPUs, beginning with the MI450 series scheduled for deployment in the second half of 2026. The pact includes a warrant that gives OpenAI the option to acquire up to 160 million AMD shares, roughly a 10 percent stake, with vesting tied to equipment deliveries and stock price milestones.

Under the arrangement, OpenAI will receive an initial one gigawatt deployment tied to the MI450 rollout, with AMD beginning to recognize revenue at that point. AMD executives said the contract covers the deployment of hundreds of thousands of GPUs and could generate tens of billions of dollars in annual revenue, with broader ripple effects they estimated could exceed $100 billion in new revenue over four years from OpenAI and other customers.

The warrant vests in tranches based on mutually agreed milestones. The first tranche vests after the initial MI450 shipments, and later tranches are linked to additional capacity deployments and escalating AMD share-price...