Chipmaker AMD saw its market value swell by an astonishing $80 billion after unveiling a comprehensive, multibillion-dollar deal with AI leader OpenAI. The agreement, which caused AMD shares to jump more than 30%, involves a massive sale of AI chips and grants OpenAI the option to take a significant equity stake in the company.
This strategic partnership is a clear signal of the AI industry’s insatiable need for computing power. OpenAI, the creator of ChatGPT, has committed to purchasing hundreds of thousands of AMD’s graphics processing units (GPUs) over several years. The deployment, set to begin in late 2026, is engineered to provide the foundational infrastructure for developing AI that approaches or exceeds human-level intelligence.
A key feature of the deal is the issuance of a warrant to OpenAI. This financial instrument gives the AI firm the right to purchase 160 million shares of AMD stock at just $0.01 per share. If exercised, this would give OpenAI a 10% stake in the chipmaker, transforming the relationship from a simple supply agreement into a deeply integrated, long-term alliance.
The sheer scale of the hardware involved is immense. The deal covers the deployment of computing infrastructure equivalent to six gigawatts of power, comparable to the energy needs of five million U.S. households. OpenAI is set to kickstart this expansion by building a one-gigawatt facility next year, which will be powered by AMD’s forthcoming MI450 series chips.
AMD executives are bullish about the financial returns, projecting tens of billions of dollars in annual revenue from the arrangement. The company also anticipates that OpenAI’s endorsement will create a powerful ripple effect across the industry, driving more than $100 billion in new revenue over the next four years as other tech companies follow suit and invest in AMD’s AI ecosystem.