Advanced Micro Devices ($AMD) surged as much as 28% in premarket trading after announcing a landmark agreement with OpenAI to supply 6 gigawatts of graphics processing units (GPUs) for the company’s AI infrastructure — a deal that could generate tens of billions in new revenue for the chipmaker.
- Under the multi-year deal, OpenAI will deploy AMD’s GPUs and receive warrants for up to 160 million AMD shares, vesting as performance and share-price milestones are met, including one tranche tied to a $600 share price.
- AMD shares rose to $211.18 in early trading, their largest intraday gain in over nine years. Nvidia ($NVDA) shares fell 1.4%.
- The first phase of GPU deployment — using AMD’s Instinct MI450 chips — will begin in the second half of 2026.
- AMD projects the OpenAI partnership will drive “tens of billions” in future revenue, with major growth expected by 2027, according to CFO Jean Hu.
- OpenAI’s infrastructure expansion follows Nvidia’s September commitment to invest up to $100 billion in AI data centers for the company’s next-generation systems.
Relevant Companies
- $AMD — Primary beneficiary of the OpenAI partnership, potentially adding tens of billions in AI-related revenue.
- $NVDA — Faces increased competition as AMD expands its presence in the AI data center GPU market.
- $MSFT — As OpenAI’s largest investor, Microsoft may benefit indirectly through enhanced AI computing capacity and service scalability.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
