AMD & OpenAI Partner for Massive AI Compute Capacity
AMD and OpenAI have joined forces to scale up compute capacity for AI systems. The partnership will see AMD supplying OpenAI with up to 6 gigawatts of its Instinct GPUs, starting with the MI450 series in late 2026.
The deal requires substantial investment in data center infrastructure, including power distribution and cooling systems, to accommodate the high compute power. AMD has selected TSMC's 7nm process technology for manufacturing these GPUs, which may face supply constraints due to this agreement. AMD's Radeon Instinct MI50, for instance, features a 331 mm² chip with 13.23 billion transistors. This partnership secures OpenAI a long-term supply of tailored compute hardware, bolstering its resilience against supply fluctuations. However, it also significantly increases demand for TSMC's foundry capacity at 3nm and 5nm nodes.
AMD will be a core compute supplier for OpenAI, with a multi-generational collaboration on hardware and software. This represents a significant expansion for AMD into the AI infrastructure market and diversifies its customer base. The supply chain for these systems spans multiple regions, exposing both companies to geopolitical risks and potential regulatory constraints.
AMD has issued OpenAI a warrant for up to 160 million shares of AMD common stock, vesting based on performance metrics. This strategic partnership aims to scale compute capacity for AI systems, with AMD's Instinct GPUs powering OpenAI's AI systems up to 6 gigawatts.
Read also:
- Elon Musk accused by Sam Altman of exploiting X for personal gain
- China's Automotive Landscape: Toyota's Innovative Strategy in Self-Driving Vehicles
- L3Harris' RASOR Revolutionizes Military Communications with Secure Satellite Broadband
- EU Bolsters Defense Capabilities: Orbotix Secures €6.5M for AI-Driven Drones
