OpenAI announced a partnership with AMD to deploy 6 gigawatts (GW) of compute power to support its AI infrastructure.
The first 1 GW of deployment of AMD Instinct MI450 GPUs is set to begin in the second half of next year.
Besides, AMD has granted OpenAI a warrant for up to 160 million shares of its common stock. This warrant is structured to vest in tranches, with the first tranche vesting upon the initial 1 GW deployment of AMD’s GPUs.
Subsequent tranches will vest as purchases scale up to 6 gigawatts. Vesting is also tied to AMD achieving specific share-price targets and OpenAI meeting the necessary milestones to facilitate large-scale deployments of AMD GPUs.
According to Reuters, this deal allows OpenAI to purchase the 160 million shares at $0.01 each. This roughly amounts to 10% of AMD’s equity.
“AMD’s leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster,” said Sam Altman, CEO of OpenAI, in the announcement.
This partnership deepens the collaboration between the two companies, which began with OpenAI using AMD’s MI300X series last year to power its services via Azure.
“Our partnership with OpenAI is expected to deliver tens of billions of dollars in revenue for AMD while accelerating OpenAI’s AI infrastructure buildout,” said Jean Hu, CFO of AMD.
Over the last few weeks, OpenAI has signed numerous partnerships and deals with companies such as Oracle, Softbank, and NVIDIA to expand its compute capacity.
Last month, OpenAI and NVIDIA signed a letter of intent for a strategic partnership to deploy at least 10 gigawatts of NVIDIA systems for OpenAI’s next-generation AI infrastructure.
The agreement includes NVIDIA investing up to $100 billion in OpenAI, tied to each gigawatt of systems deployed.
Furthermore, OpenAI announced five new AI data centre sites, along with Oracle and SoftBank, in the United States. The announcement is part of the Stargate Project, the $500 billion initiative to build AI infrastructure across the US, led by OpenAI and SoftBank in partnership with Oracle, MGX, Arm, Microsoft and NVIDIA.
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