OpenAI has struck a major deal with chipmaker AMD that could give the AI startup ownership of up to 10% of the company. AMD announced the partnership on October 6, calling it a six gigawatt agreement that will deploy large numbers of AMD GPUs for OpenAI’s computing needs. AMD shares rose 28% on the news, settling around $206.
Stock Vests Based on Milestones
The 160 million AMD common shares will not transfer all at once. According to Fortune, they are structured to vest when specific milestones are met. These include share price targets that AMD must reach.
The first stock tranche comes with an initial one gigawatt deployment of AMD’s Instinct MI450 GPUs. AMD plans this rollout for the second half of 2026. The deal marks a significant partnership between the well-funded AI startup and the Silicon Valley chipmaker.
OpenAI Pursues Multiple Chip Partners
Nvidia Deal Comes First
This AMD agreement does not mean OpenAI is choosing against AI chip leader Nvidia. Just two weeks earlier, OpenAI announced a 10 gigawatt deal with Nvidia. That deployment also starts in the second half of 2026.
The dual partnerships reflect OpenAI’s massive computing needs. The Stargate project with Microsoft, Oracle, and Softbank plays a role in this strategy. But the deals also show classic Silicon Valley blitzscaling, where companies rapidly expand their resources and capabilities.
AMD CEO Lisa Su has positioned the company as an alternative to Nvidia in the AI chip market. The OpenAI partnership gives AMD a major customer and validates its GPU technology. For OpenAI, working with multiple chip suppliers helps ensure access to the computing power needed for its AI models.
The vesting structure ties OpenAI’s stake to AMD’s performance. This aligns the interests of both companies. As AMD hits targets, OpenAI gains more ownership. The arrangement could reshape relationships in the AI hardware industry.
