Shares in Advanced Micro Devices Inc. (AMD) stock are surging after the company announced a multi-billion-dollar deal with OpenAI. The chipmaker will provide upward of 6 gigawatts of GPUs to the AI juggernaut over several generations, starting with its MI450 chips in the second half of 2026, per a Monday announcement. In return, OpenAI will take a stake in AMD worth up to 160 million shares, or roughly 10% of the company.
“Our partnership with OpenAI is expected to deliver tens of billions of dollars in revenue for AMD while accelerating OpenAI’s AI infrastructure buildout,” AMD CFO Jean Hu said in a statement. “This agreement creates significant strategic alignment and shareholder value for both AMD and OpenAI and is expected to be highly accretive to AMD’s non-GAAP earnings-per-share.”
“AMD’s leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster,” Sam Altman, co-founder and CEO of OpenAI, added in his own statement. The leading AI startup added that AMD will act “as a core strategic compute partner to drive large-scale deployments” of its technology.”
What the AMD-OpenAI Deal Entails
The deal will also give OpenAI the chance to purchase 160 million shares of Advanced Micro Devices Inc. at a penny each. These shares will vest over time as different milestones are reached — starting with that first one gigawatt deployment. Ultimately, these shares would give OpenAI up to a 10 percent stake in AMD. Additionally, the deal also creates a bit of a triangle, following in the heels of AMD-rival Nvidia’s $100B investment into OpenAI just a few weeks ago.
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Compared to its rival, NVDA, AMD stock has generally underperformed over the last year, rising just 1%, while Nvidia’s stock has risen 52%. However, the last few months have painted a different picture. Over the previous six months, AMD shares have been climbing 75%, while Nvidia’s shares jumped 84%: a much narrower gap.