On October 6th, as reported by the Wall Street Journal, OpenAI and chip design giant AMD have forged a multi-billion-dollar partnership aimed at co-developing artificial intelligence data centers powered by AMD processors. Under the terms of the agreement, OpenAI is set to acquire AMD chips boasting a staggering 6 gigawatts of computing power. Starting next year, OpenAI will adopt AMD's MI450 chips, with procurement options including direct purchases or acquisitions through cloud computing partners.

The CEO of AMD highlighted that this landmark deal is poised to inject tens of billions of dollars in fresh revenue into AMD over the forthcoming five-year period. While the total projected cost remains undisclosed by both entities, AMD indicated that the expense per gigawatt of computing capacity could soar into the tens of billions of dollars.

In a strategic move, if OpenAI successfully meets specific deployment milestones, it stands to receive up to 160 million AMD stock warrants in phases. These warrants, priced at a mere 1 cent per share, would constitute roughly 10% of AMD's outstanding shares. However, the exercise of these warrants is contingent upon AMD's stock price experiencing an upward trajectory.