Shares of chipmaker Advanced Micro Devices (AMD) soared over 25% on Monday after OpenAI announced a multi-year partnership that could see it take up to a 10% stake in the company.
Under the agreement, OpenAI will deploy up to 6 gigawatts of AMD's Instinct GPUs over several years, starting with a 1 GW rollout in 2026. The deal, one of the largest in the AI hardware space, positions AMD as a key supplier for OpenAI's expanding infrastructure needs.
AMD has granted OpenAI a warrant for up to 160 million shares, with vesting linked to chip deployment milestones and share price performance. If fully exercised, the stake would amount to about 10% of AMD's outstanding shares.
OpenAI CEO Sam Altman said AMD's high-performance chips will help "accelerate the pace of AI innovation," while AMD chief Lisa Su called the deal a "win-win" for both companies and the wider AI ecosystem.
The partnership comes just weeks after OpenAI's $100 billion hardware deal with Nvidia, underscoring the AI firm's push to diversify chip suppliers amid surging global demand.
Analysts say the tie-up could significantly boost AMD's position in the AI accelerator market, long dominated by Nvidia. AMD's shares closed at $205.50, marking one of their strongest trading days in recent years.
