AMD, OpenAI Team Up for 6-Gigawatt Data Centre, Challenging Nvidia's AI Dominance
AMD has inked a significant deal with OpenAI, granting the AI giant a warrant for up to 160 million shares of AMD common stock. This partnership aims to optimise AMD's GPUs for generative AI workloads and power a massive 6-gigawatt data centre by the end of the decade.
The collaboration, driven by the escalating demands of large language models and multimodal systems, will see AMD and OpenAI co-develop firmware and driver layers to maximise the performance of AMD's MI450 GPUs. The initial deployment is set for the second half of 2026, with one gigawatt of AMD Instinct MI450 GPUs, scaling up to six gigawatts over the coming years.
Analysts predict this partnership could generate tens of billions of dollars in revenue for AMD over its lifetime. It also challenges Nvidia's dominance in the AI compute arena and may prompt other AI organisations to consider AMD as a viable alternative.
This strategic alliance underscores the importance of hardware-software co-evolution in the AI sector. It extends to future generations of AMD's Instinct models, ensuring OpenAI runs on state-of-the-art processors throughout its models' lifecycle. Furthermore, AMD and Microsoft have approved a multi-year partnership to expand a fleet of AMD GPUs for use in the same 6-gigawatt data centre, exemplifying the growing trend of deep, cross-disciplinary alliances in AI.
