OpenAI’s multibillion-dollar bet on AMD’s artificial intelligence technology paid off instantly for the chipmaker, which saw its market capitalization surge by an incredible $80 billion following the announcement of their new partnership. The deal represents a massive vote of confidence in AMD’s ability to power the next generation of AI.
The stock market’s euphoric reaction, which saw shares climb over 30%, was driven by the sheer scale and strategic depth of the agreement. OpenAI has committed to purchasing hundreds of thousands of AMD’s high-performance GPUs, the critical hardware needed to train large-scale AI models. This ensures a steady, massive revenue stream for AMD for years to come.
This partnership is designed to address what OpenAI CEO Sam Altman has described as his company’s biggest growth constraint: access to computing power. The deal will provide six gigawatts of capacity, a colossal amount of computational resource that will be deployed starting in late 2026. A one-gigawatt facility based on AMD’s upcoming MI450 chips will be the first major project.
Further sweetening the deal for both sides, OpenAI has been granted an option to become a part-owner of AMD. A warrant allows the AI firm to buy up to 160 million shares at a nominal price, giving it a potential 10% stake. This structure ensures that both companies are deeply invested in the success of the collaboration.
AMD executives expect the deal to generate tens of billions in annual revenue directly and catalyze over $100 billion in new revenue over four years. They believe OpenAI’s choice will act as a powerful signal to the rest of the market, solidifying AMD’s position as a premier provider of AI infrastructure.