AMD Secures Multi-Billion AI Chip Deal with OpenAI Including 10% Stake Option

AMD has entered into a landmark multi-year agreement with OpenAI to supply six gigawatts of AI computing power, beginning with the deployment of AMD Instinct MI450 GPUs in the second half of 2026. This deal is expected to generate tens of billions of dollars in annual revenue for AMD and could result in over $100 billion in revenue over four years due to its broader industry impact. As part of the strategic partnership, OpenAI has the option to acquire up to a 10% stake in AMD through warrants for up to 160 million shares, contingent on meeting specific milestones including AMD's share price targets. This collaboration significantly boosts AMD's position in the AI chip market, providing a competitive alternative to Nvidia and supporting OpenAI's massive AI infrastructure buildout. The agreement has been described as transformative and has driven substantial gains in AMD's stock price, reflecting investor confidence in AMD's growing role in AI technology. The partnership is supported by Microsoft and highlights the dynamic and rapidly evolving AI hardware landscape.