OpenAI chief Sam Altman announced an AI chip partnership with California-based chipmaker Advanced Micro Devices, Inc. (AMD) on Monday, October 6. Following the development, the shares of AMD rose by upto 35 percent, presently reflecting a price point of $207.67.
Altman, on Monday, posted the announcement on X without reveling elaborate details around the deal.
“Excited to partner with AMD to use their chips to serve our users! The world needs much more compute,” the AI mogul posted. He also added that the chip procurement from AMD will be incremental to the company’s ongoing work with Nvidia. The share price of Nvidia dropped by 1.04 percent, bringing its value to $185.63.
Commenting on the development, AMD said that it will be working with OpenAI to develop 6GW of AI infrastructure. Of this, the initial 1GW deployment of AMD’s MI450 series GPU capacity is slated to go live in the second half of 2026.
“AMD and OpenAI are deepening their multi-generational hardware and software collaboration that began with the MI300X and continued with the MI350X series,” the company noted.
AMD has offered OpenAI to purchase 10 percent stake in the company — making for 160 million common stocks at the rate of 1 cent/share. Whether or not OpenAI is considering to take the offer up, remains undisclosed for now.
“Building the future of AI requires deep collaboration across every layer of the stack. Working alongside AMD will allow us to scale to deliver AI tools that benefit people everywhere,” said Greg Brockman, co-founder and president of OpenAI.
Back in September, OpenAI had announced its AI infrastructure partnership with Nvidia. This collaboration is projected to deploy at least 10 gigawatts of NVIDIA systems to support the next generation of OpenAI’s AI model training and deployment.
The AI firm is accelerating efforts to elevate the AI-supporting ecosystem after it announced the Stargate Project in January this year. The initiative follows the intension of investing $500 billion in developing the infrastructure to support high tech AI capabilities. SoftBank, OpenAI, Oracle, and MGX are also part of the Stargate Project.