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OpenAI’s 26-GW Chip Commitments Boost Supplier Outlook, Expose Financing and Power Hurdles

Fresh price-target hikes cite AMD’s MI450 rollout from 2026, with OpenAI’s multi-year build tied to equity-linked supply deals.

Overview

  • OpenAI has lined up roughly 26 gigawatts of accelerator capacity across Nvidia, AMD, and Broadcom, with first deployments scheduled to begin in the second half of 2026.
  • AMD’s agreement covers 6 GW of Instinct GPUs, starting with 1 GW of MI450 systems in 2H26, and includes equity warrants for OpenAI tied to performance milestones.
  • Broadcom will provide 10 GW of custom accelerators and rack systems, with rollout beginning in 2H26 and targeted completion by the end of 2029.
  • Analysts say fulfilling the chip orders could require hundreds of billions of dollars as OpenAI projects profitability only in 2029, with reports noting vendor-financing loops and a potential Nvidia investment of up to $100 billion.
  • Investor focus has shifted to execution and milestones as HSBC lifted AMD’s target to $310 and Bank of America to $300, highlighting MI450 visibility and a Nov. 11 analyst event, while energy availability and long-term power contracts remain pivotal.