OpenAI Strikes Multi Billion Pound Deal With AMD In Landmark AI Partnership

OpenAI has dramatically intensified its artificial intelligence ambitions, announcing an unprecedented agreement with semiconductor giant Advanced Micro Devices. In this multi-billion pound partnership, OpenAI will acquire tens of billions of pounds worth of high-performance chips from AMD—a move expected to supercharge its efforts to advance AI to its fullest capabilities. The deal was revealed on Monday as US financial markets responded with marked optimism, ushering a notable boost across the major indices.

The freshly inked agreement will see OpenAI take a ten per cent stake in AMD, valued at an eye-watering two hundred and seventy billion dollars. In return, AMD will supply OpenAI with the very processing hardware on which the AI sector’s future depends. AMD shares soared by thirty-four per cent at the market open, pushing the company’s valuation to three hundred and fifty-five billion dollars and setting the stage for a rapid expansion in global computing power dedicated to artificial intelligence.

Sam Altman, OpenAI’s chief executive, hailed the partnership as a “major step in building the compute capacity needed to realise AI’s full potential.” His remarks underscore the scale of the planned deployment, with the first gigawatt of AMD’s cutting-edge chips to be delivered in the second half of twenty twenty-six—a milestone in an overall six gigawatt arrangement. Given OpenAI’s estimate that each gigawatt equates to roughly fifty billion dollars in costs, the scale of investment in infrastructure is virtually unparalleled.

Lisa Su, the chair and chief executive of AMD, emphasised the mutually beneficial nature of the alliance, stating, “This partnership brings the best of AMD and OpenAI together to create a true winwin enabling the world’s most ambitious AI buildout and advancing the entire AI ecosystem.” The deal arrives just weeks after rival chipmaker Nvidia announced a one hundred billion dollar investment in OpenAI, highlighting the intensifying competition to support the ever-growing data and computational needs of generative AI technologies.

The wider financial markets responded in stride. Wall Street enjoyed a rally, with the S and P five hundred rising by nearly twenty points and both the Dow Jones Industrial Average and Nasdaq Composite posting healthy gains. Confidence in the AI sector’s momentum appears undimmed, even as investors remain cautious about concerns such as the US government shutdown.

This landmark agreement not only cements AMD’s status as a key player on the global stage but also signals OpenAI’s commitment to building infrastructure at a scale that could reshape technological progress. The implications for the AI ecosystem—spanning research, industry, and the wider digital economy—are likely to reverberate for years to come.