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Lisa Su, AMD chair and CEO, said that a recent partnership with OpenAI will significantly accelerate the firm’s data center AI business
In sum – what to know:
Data center revenue surges 22% – AMD’s data center segment hit $4.3 billion in Q3, driven by strong demand for 5th Gen EPYC CPUs and Instinct MI350 GPUs.
OpenAI deal cements AI position – A multi-year 6 GW GPU deployment with OpenAI, starting in 2026, positions AMD as a core compute partner and could yield $100B+ in future revenue.
Expanding global AI footprint – AMD’s Instinct GPUs are powering UAE’s sovereign AI cluster and Lux AI at Oak Ridge National Lab, marking deeper reach in scientific and national AI systems.
Chip maker AMD posted revenues of $4.3 billion in its data center business segment in the third quarter of the year, up 22% year-over-year, the company said in a release.
The firm attributed this growth primarily to strong demand for 5th Gen AMD EPYC processors and AMD Instinct MI350 Series GPUs.
AMD highlighted that its data center segment primarily includes artificial intelligence (AI) accelerators, server microprocessors (CPUs), graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), field programmable gate arrays (FPGAs), smart network interface cards (SmartNICs) and adaptive system-on-chip (SoC) products for data centers.
The company posted $9.3 billion in revenue for the third quarter, an increase of 36% year-on-year. Operating income for the quarter was $1.3 billion, while net income was $1.2 billion. Operating expenses totaled $3.5 billion in Q3, an increase of 30% year-on-year and primarily driven by AMD’s continued investment in R&D to “capitalize on significant AI opportunities and go-to-market activities for revenue growth,” the company said.
“We announced a comprehensive multi-year agreement with OpenAI to deploy 6 gigawatts of Instinct GPUs, with the first gigawatt of MI450 series accelerators scheduled to start coming online in the second half of 2026. The partnership establishes AMD as a core compute provider for OpenAI and underscores the strength of our hardware, software, and full-stack solutions strategy,” Lisa Su, company chair and CEO, said during the company’s earnings call.
“Moving forward, AMD and OpenAI will work even more closely on future hardware, software, networking, and system-level roadmaps and technologies,” she added.
Su also said that the partnership is expected to significantly accelerate the firm’s data center AI business, with the potential to generate well over $100 billion in revenue over the next few years.
“Our Instinct platforms are also gaining traction with sovereign AI and national supercomputing programs. In the UAE, Cisco and G42 will deploy a large-scale AI cluster powered by Instinct MI350X GPUs to support the nation’s most advanced AI workloads. In the US, we are partnering with the Department of Energy and Oak Ridge National Labs to build Lux AI, the first AI factory dedicated to scientific discovery, together with our industrial partners OCI and HPE,” Su added.
The executive noted that AMD’s AI business is entering a new phase of growth and is on a clear trajectory towards tens of billions in annual revenue in 2027.
“The demand for compute has never been greater as every major breakthrough in business, science, and society now relies on access to more powerful, efficient, and intelligent computing. These trends are driving unprecedented growth opportunities for AMD,” she added.
Su said the company would provide more details on its AI data center growth plans at AMD’s Financial Analyst Day on November 11.
