AMD has officially entered into a multi-year partnership with OpenAI, securing one of the largest AI hardware contracts ever. The deal involves the delivery of hundreds of thousands of MI450 GPUs designed for data centers, with a potential total value exceeding $100 billion over the next four years.
Under the agreement, AMD will supply roughly 6 gigawatts of compute capacity starting in the second half of 2026, supporting OpenAI’s push to scale its next-generation artificial intelligence models.
Following the announcement, AMD’s stock skyrocketed by 41%, marking its biggest one-day gain since 2016. As of publication, shares were trading at $206.8, giving the company a market capitalization of $336 billion, according to TradingView.
AMD Executive Vice President Forrest Norrod called the partnership “transformational not just for AMD, but for the entire AI industry.”
OpenAI to Acquire up to 10% of AMD Shares
In a surprising twist, OpenAI will gain rights to purchase up to 160 million AMD shares — roughly 10% of the company’s equity — for a symbolic $0.01 per share. The stock purchase order will activate in phases, tied to chip delivery milestones and AMD’s market capitalization targets, including a share price threshold of $600.
AMD expects the partnership to deliver tens of billions in annual revenue and more than $100 billion cumulatively from OpenAI and related contracts over the next few years. For context, LSEG estimates AMD’s total 2025 revenue at just $32.78 billion, meaning this agreement could triple or even quadruple its financial trajectory.
Competition in the AI Chip Race Intensifies
The deal adds new momentum to AMD’s rivalry with Nvidia, which last month signed a separate 10-gigawatt supply agreement with OpenAI — but without any equity component.
OpenAI CEO Sam Altman said the AMD partnership will provide the infrastructure necessary to build the next generation of AI models, while reports suggest the company is also in talks with Broadcom and developing its own in-house AI chip division.
Industry experts see this as part of OpenAI’s long-term strategy to reduce dependence on Nvidia and diversify its supply chain for high-performance compute.
Meanwhile, Huawei has unveiled a three-year roadmap aimed at challenging Nvidia’s dominance in AI chip manufacturing, signaling a new phase in global competition for AI hardware leadership.
