Advanced Micro Devices Inc. (AMD) surged Monday, adding around USD64 billion in market value after announcing a landmark artificial intelligence infrastructure partnership with OpenAI, owner of ChatGPT.
The agreement includes the deployment of up to 6 gigawatts of AMD’s Instinct GPUs across multiple product generations. The first 1 gigawatt phase, featuring AMD’s new MI450 chips, is set to begin in the second half of 2026.
AMD shares closed 24 percent higher to USD203.71, one of the chipmaker’s strongest trading sessions in years. The stock continued to climb in after-hours trading.
“This partnership brings the best of AMD and OpenAI together,” said AMD Chair and CEO Dr. Lisa Su. “It enables the world’s most ambitious AI buildout and advances the entire AI ecosystem.”
Under the agreement, AMD will issue OpenAI warrants for up to 160 million shares of AMD common stock. At Monday’s closing price, those shares would be worth approximately USD32.6 billion. The warrants will vest in phases, beginning with the initial 1 gigawatt deployment and scaling as purchases increase to 6 gigawatts. Additional vesting is tied to AMD share price targets and OpenAI achieving technical and commercial milestones.
OpenAI, which is valued at approximately USD 500 billion, will work with AMD as a core strategic compute partner. The collaboration builds on earlier joint work around AMD’s MI300X and MI350X GPU series, and aims to optimize future product roadmaps through shared technical expertise.
“Building the future of AI requires deep collaboration,” said OpenAI President Greg Brockman. “Partnering with AMD allows us to scale and deliver AI tools to benefit people everywhere.”
AMD’s Chief Financial Officer Jean Hu said the deal is expected to generate “tens of billions of dollars” in revenue for AMD and be “highly accretive” to its non-GAAP earnings per share.
As demand for AI computing power accelerates, this multi-year agreement positions AMD as a significant alternative to Nvidia, strengthening its presence in the rapidly growing AI infrastructure market.
—-
