AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake (www.reuters.com)

AMD has struck a major supply agreement with OpenAI to provide “hundreds of thousands” of AI chips, and the deal includes a warrant allowing OpenAI to purchase up to 10% of AMD’s shares at $0.01 per share. AMD says the arrangement — and related business with other AI customers — could drive more than $100 billion in revenue, underscoring a potentially transformative commercial relationship between one of the leading silicon vendors and a preeminent AI developer. Technically and strategically, the pact signals large-scale procurement for training and inference workloads that power large language models and generative AI, and it could shift the hardware balance in a market long dominated by one supplier. Supplying chips at that scale will require integration across data‑center power, cooling, interconnects and software stacks, and may accelerate optimizations in AMD’s AI accelerator ecosystem. The near‑nominal equity option also creates an unusually close commercial alignment, with implications for corporate governance, supplier reliance, and competition in the AI infrastructure market.