AMD (NASDAQ: AMD) and OpenAI announced a multi-year agreement for OpenAI to deploy 6 gigawatts of AMD GPUs for artificial intelligence infrastructure. The initial 1 gigawatt deployment of AMD Instinct MI450 Series GPUs will begin in the second half of 2026.

Under the definitive agreement, OpenAI will use AMD as a core strategic compute partner for large-scale deployments starting with the MI450 series and extending to future GPU generations. The partnership builds on previous collaborations involving AMD's MI300X and MI350X series.

AMD issued OpenAI a warrant for up to 160 million shares of AMD common stock, structured to vest as specific milestones are achieved. The first tranche vests with the initial 1 gigawatt deployment, with additional tranches tied to purchases scaling up to 6 gigawatts. Vesting also depends on AMD achieving certain share-price targets and OpenAI meeting technical and commercial milestones.

"We are thrilled to partner with OpenAI to deliver AI compute at massive scale," said Dr. Lisa Su, AMD's chair and CEO. "This partnership brings the best of AMD and OpenAI together to create a true win-win enabling the world's most ambitious AI buildout and advancing the entire AI ecosystem."

Sam Altman, OpenAI's co-founder and CEO, said the partnership represents "a major step in building the compute capacity needed to realize AI's full potential."

Jean Hu, AMD's executive vice president and CFO, stated the partnership is expected to deliver tens of billions of dollars in revenue for AMD and be highly accretive to the company's non-GAAP earnings-per-share.

AMD will hold a conference call at 5:00 a.m. PT to discuss the announcement, according to the company's press release.