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OpenAI and Advanced Micro Devices (AMD) have entered a multi-year agreement that could allow Sam Altman’s company to acquire up to a 10% stake in the chipmaker.
Under the deal, OpenAI will deploy up to six gigawatts of AMD’s Instinct GPUs over several years, beginning with a one-gigawatt rollout in the second half of 2026.
As part of the arrangement, AMD has issued OpenAI a warrant to purchase up to 160 million shares of its stock for $0.01 each. The warrant vests in stages tied to both deployment and share price milestones, reaching as high as $600 per share for the final tranche. The first milestone will be triggered once the initial shipment of AMD’s MI450 chips is completed in 2026.
AMD executives said the partnership could generate tens of billions of dollars in annual revenue, with more than $100 billion expected over four years from OpenAI and related customers. The deal represents one of the largest GPU deployment commitments in the history of artificial intelligence infrastructure.
AMD stock surged more than 35% during premarket trading on Monday following the announcement, setting the stage for its highest opening since March 2024. The company, currently valued at about $267 billion with 1.62 billion shares outstanding, closed at $164.67 on Friday.
The contract elevates AMD to a strategic partner in OpenAI's long-term infrastructure expansion. On the part of AMD, it serves as a significant confirmation of its product roadmap, the Instinct product, which strengthens its competitiveness with NVIDIA in the AI accelerator market. AMD’s leadership described the partnership as a milestone that advances both companies’ ambitions to scale global AI infrastructure.
In the case of OpenAI, the acquisition expands its hardware collaboration and aids its goal of delivering 23 gigawatts of computing strength across various locations. The firm has already entered into a supply contract with NVIDIA worth $ 100 billion. It is currently in talks with Broadcom, which will create tailor-made chips to operate in subsequent model generations.
Also Read: AMD Stock Drops 5% as Intel and NVIDIA Seal $5 Billion AI Chip Partnership
The OpenAI deal represents the trend of making AI hardware increasingly interdependent, as the major players share capital, equity, and computing power. The shares of NVIDIA fell 1 percent in pre-market trading following the announcement amid expectations that the market would change with AMD becoming a more powerful competitor.
It is a significant business milestone for AMD, which had been trailing behind NVIDIA in the high-performance graphics card market for some time. The acquisition also highlights OpenAI's efforts to diversify its hardware supply chain and reduce its reliance on a single vendor, as the world demands more AI compute resources.
OpenAI declared that it had generated $4.3 billion in revenue and remained heavily invested in infrastructure and research during the first half of 2025. The collaboration with AMD will not only enable it to continue its developmental path within the Stargate project, but it will also establish itself as one of the largest infrastructure builders in the AI market.
