OpenAI, the creator of ChatGPT, is set to build a massive one-gigawatt data center facility starting next year, powered by AMD’s forthcoming MI450 series of AI chips. This project is a cornerstone of a new multibillion-dollar partnership between the two companies, aimed at massively scaling up OpenAI’s computing infrastructure.
The agreement is a significant endorsement of AMD’s next-generation technology and part of a larger plan to supply OpenAI with hundreds of thousands of GPUs over several years. In total, the hardware deployment will support a staggering six gigawatts of computing power, a resource pool essential for training AI models that are orders of magnitude more complex than today’s.
This partnership addresses the most critical need for OpenAI and the broader AI industry: an insatiable appetite for computing power. CEO Sam Altman has consistently pointed to chip access as the biggest barrier to progress. This deal, along with other recent investments, shows a clear strategy to build an unparalleled hardware foundation to overcome that challenge.
The alliance also features a unique financial structure that could make OpenAI a major AMD shareholder. A warrant issued to OpenAI gives it the right to buy 160 million shares, equivalent to a 10% stake, for a minimal cost. This arrangement solidifies the partnership, ensuring both parties are invested in each other’s success.
The announcement had a dramatic effect on Wall Street, where AMD’s stock value surged by $80 billion. The chipmaker now anticipates tens of billions in annual revenue from this deal alone, and over $100 billion in new revenue over four years as the rest of the industry takes note of OpenAI’s technology choices.
35