Advanced Micro Devices shares surged more than 30% Monday after the company announced a sweeping, multi-year deal with OpenAI that could make the ChatGPT developer one of its largest shareholders and solidify AMD's foothold in the booming artificial intelligence hardware market.
Under the agreement, OpenAI will deploy 6 gigawatts of AMD's Instinct graphics processing units (GPUs) across several generations of hardware, beginning with a 1-gigawatt rollout in the second half of 2026. The deal, valued in the billions, marks one of the largest GPU supply arrangements in the AI industry to date and positions AMD as a core strategic supplier to OpenAI's expanding compute infrastructure.
As part of the deal, AMD granted OpenAI a warrant for up to 160 million shares of its common stock, vesting as both companies hit key milestones. The first tranche will unlock with the completion of the initial 1-gigawatt deployment, with subsequent tranches tied to OpenAI's scaling to 6 gigawatts and AMD's share price performance. If fully exercised, OpenAI could hold roughly 10% of AMD's outstanding shares, according to current figures.
"We are thrilled to partner with OpenAI to deliver AI compute at massive scale," AMD CEO Lisa Su said in a statement. "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."
OpenAI CEO Sam Altman said in the joint announcement that "AMD's leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster." The partnership expands OpenAI's supplier network and reduces its reliance on a single vendor after recent multi-billion-dollar commitments with Nvidia, Oracle, and Samsung.
Just two weeks ago, OpenAI signed a $100 billion deal with Nvidia, securing at least 10 gigawatts of AI data centers powered by Nvidia processors. Together with the AMD partnership, OpenAI has now committed close to $1 trillion in infrastructure investments for its 23-gigawatt AI road map, including upcoming sites in Texas, New Mexico, and Ohio.
The new agreement also signals a competitive breakthrough for AMD, which has spent years trying to catch Nvidia in the lucrative AI accelerator market. Its Instinct MI450 Series GPUs-set to power OpenAI's deployments-are designed for high-efficiency, large-scale data center applications. Analysts say the deal validates AMD's technology roadmap and could reshape the balance of power in the AI chip race.
