AMD will supply OpenAI with hundreds of thousands of GPUs in a multi-year deal that will also provide the ChatGPT-maker the opportunity to take a ten percent stake in the chip firm.

While no financial figure for the agreement has been disclosed, the companies said the total number of processors to be supplied by AMD will have a power consumption of 6GW. OpenAI has previously estimated that it costs approximately $50 billion to bring 1GW of capacity online.

The deal is expected to kick off in the second half in 2026, with OpenAI saying it would build a 1GW data center using AMD MI450 chips, starting next year. No information has been provided about where this data center will be built or who the developer will be.

Under the terms of the share purchase agreement, OpenAI has been issued a warrant to purchase up to 160 million shares, structured to vest as specific milestones are achieved. The first tranche vests with the initial 1GW deployment, with additional tranches vesting as purchases scale up to 6GW, OpenAI said in a statement.

At current valuation, a 10 percent share of AMD would be worth $27bn. However, the deal would allow OpenAI to buy the shares at one cent each.

“We are thrilled to partner with OpenAI to deliver AI compute at massive scale,” said Dr. Lisa Su, chair and CEO, AMD. “This partnership brings the best of AMD and OpenAI together to create a true win-win, enabling the world’s most ambitious AI buildout and advancing the entire AI ecosystem.”

Sam Altman, co-founder and CEO of OpenAI, added: “This partnership is a major step in building the compute capacity needed to realize AI’s full potential. AMD’s leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster.”

The announcement comes several weeks after OpenAI signed a letter of intent to deploy at least 10GW of Nvidia hardware in its data centers. Under the terms of that deal, Nvidia will invest up to $100 billion in OpenAI as the new systems are deployed.

As with the agreement with AMD, the deal between Nvidia and OpenAI is also expected to commence in the second half of 2026.

OpenAI was this month valued at $500bn following an employee share sale that saw current and former employees offload around $6.6bn worth of stock. Despite this, the company has yet to turn a profit, making it unclear how it plans to finance many of its recently announced deals or realize the $200bn of anticipated revenue it is forecasting for 2030.