AMD Wins OpenAI's Chip Deal to Supply AI Processors to ChatGPT-Maker—No More NVIDIA GPUs?

AMD has secured a massive deal with OpenAI, which involves the semiconductor company supplying the generative AI developer with AI chips for multiple years in a multi-billion-dollar deal.

AMD Wins OpenAI's AI Chip Deal

AMD has announced via its latest press release that it is the winner of a multi-year deal with OpenAI that amounts to tens of billions of dollars to supply the company with AI processors.

This deal will guarantee that hundreds of thousands of AMD AI graphics processors and such will be supplied to OpenAI starting in the second half of 2026, making them their biggest AI customer at present.

AMD executives are projecting massive revenue for the company, with this deal set to have them generate as much as $100 billion in the next four years.

AMD is hoping that this deal with OpenAI would mark the start of their AI chips getting more popular to the point where other companies that also develop their AI models would follow OpenAI's steps.

Moreover, AMD wants to compete against Nvidia, which has dominated the semiconductor industry with its AI GPUs and processors.

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OpenAI May Buy AMD Stocks

According to ArsTechnica's report, AMD explained that this deal also gives OpenAI the chance to purchase as much as 10% of the company's stock.

AMD's stock would be available to OpenAI for one cent per share should the company choose to do so.

OpenAI's AI Processors

OpenAI has a massive need for AI processors, which have been supplied by its partners and suppliers, with one of the biggest names in the industry being Nvidia. Through this significant reliance of the AI industry on Nvidia's AI GPUs and processors, the company is best known for achieving a massive valuation last year that made it the most valuable company in the world.

However, like Apple, OpenAI has plans to be self-reliant when it comes to their AI processor needs, particularly as the company was previously reported to have plans to develop their own AI chips in the future. The reports about OpenAI's self-designed AI chips continued until earlier this year, with the company later confirming that it plans to create hardware alongside it.