Advanced Micro Devices Inc (NASDAQ:AMD, ETR:AMD) shares surged 24% in premarket trading after the chipmaker agreed a deal with OpenAI, where the company behind ChatGPT will buy 160 million of its shares.
OpenAI has agreed to deploy up to 6 gigawatts of AMD’s AI chips as part of a multi-year partnership aimed at powering its next-generation of infrastructure, the companies said on Monday.
The rollout will begin with an initial 1GW of AMD’s Instinct MI450 geraphics processing units (GPUs) in the second half of 2026, marking the latest phase in a growing hardware collaboration that began with AMD’s MI300X chips.
AMD will serve as a core compute partner for OpenAI, with the two companies sharing technical expertise to optimise hardware and software roadmaps.
As part of the agreement, AMD issued OpenAI warrants for up to 160 million shares, vesting as deployment and performance milestones are reached. AMD said the deal is expected to generate “tens of billions of dollars in revenue” and be “highly accretive” to earnings.
OpenAI’s Sam Altman called it “a major step in building the compute capacity needed to realise AI’s full potential.”
It comes after OpenAI completed a funding round last week at a $500 billion valuation, making it the world's largest privately held company.
Last month, OpenAI signed an agreement with AMD rival Nvidia Corp, which agreed to invest up to $100 billion in the AI company as part of a deal where its chips will be used to expand processing power.
OpenAI also teamed up with Samsung Electronics and SK Hynix to supply the advanced memory chips needed for its 'Stargate' $500 billion network of AI-focused data centers.