AMD is collaborating with OpenAI to supply six gigawatts of processors intended for AI data centers, posing competition to Nvidia’s leadership in the AI chip market. This five-year contract seeks to aid OpenAI in strengthening its infrastructure to accommodate the increasing computational needs for AI applications like ChatGPT. It will commence with a gigawatt installation of AMD Instinct MI450 GPUs in the latter half of 2026, as indicated by AMD’s press release.

The agreement’s financial specifics remain undisclosed, but AMD projects that the partnership will generate “tens of billions of dollars in revenue” for the company.

“We are excited to collaborate with OpenAI to provide AI compute on a large scale,” stated AMD’s CEO Lisa Su in the announcement. “This collaboration combines the strengths of both AMD and OpenAI, creating a significant advantage that will facilitate the world’s most ambitious AI expansion and advance the overall AI ecosystem.”

This story is developing….