AMD Stock Soars 29% After OpenAI’s Massive Chip Deal

OpenAI has signed a major deal with AMD to use its chips to power future AI systems, marking one of the biggest hardware commitments yet in the race to scale artificial intelligence.

The agreement covers up to 6 gigawatts of compute capacity using multiple generations of AMD Instinct GPUs, starting with a 1-gigawatt rollout of the new MI450 chips in late 2026.

Under the partnership, OpenAI will make AMD a core supplier for its next-generation infrastructure. The two companies will work closely to fine-tune AMD’s roadmap for AI chips and software, continuing a collaboration that started with AMD’s MI300X and MI350X GPUs.

To secure the partnership, AMD issued OpenAI a warrant for up to 160 million shares of its stock. The shares will vest as OpenAI ramps up chip purchases and hits technical and commercial milestones. OpenAI has an option to buy about 10% of AMD essentially.

“We are thrilled to partner with OpenAI to deliver AI compute at massive scale,” said Dr. Lisa Su, chair and CEO, AMD, in a statement on Monday. “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.”

The announcement today has sent shares of AMD soaring up 29% as of writing. Shares of AMD are up 75% year to date as the tech surge in the markets continues.

The deal could be worth tens of billions of dollars in revenue for AMD, according to company CFO Jean Hu, as OpenAI continues expanding its infrastructure to support future generations of ChatGPT and other AI models.

“This partnership is a major step in building the compute capacity needed to realize AI’s full potential,” said Sam Altman, co-founder and CEO of OpenAI. “AMD’s leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster.”

OpenAI has been making some big announcements lately to power its data centres. Just two weeks ago it made a deal with NVIDIA, which will see the latter invest up to $100 billion US into OpenAI.