OpenAI Drops Nvidia, Partners with AMD for 1 GW GPU Milestone
OpenAI has announced a significant shift in its GPU supply, moving from Nvidia to AMD. This change comes as OpenAI aims to reach a major milestone of delivering one gigawatt of GPUs in the coming year.
The new multi-year partnership between OpenAI and AMD has sparked a surge in AMD's share price, which has risen by approximately 30% following the announcement. Under this agreement, AMD will commence GPU deliveries in the second half of 2026, with a total output of six gigawatts.
OpenAI's decision to switch from Nvidia, its previous semiconductor supplier, to AMD is a strategic move that opens up new avenues for hardware sourcing. The company has been a substantial customer of Nvidia's GPUs but has now chosen to collaborate with AMD for its future GPU needs.
The partnership between OpenAI and AMD is set to reshape the GPU landscape, with OpenAI securing a substantial supply for its operations. AMD's share price surge reflects the market's confidence in this collaboration. Additionally, OpenAI has the option to purchase up to 160 million AMD shares, subject to certain milestones being met, further solidifying their commitment to this partnership.
