OpenAI has entered a multibillion-dollar agreement with chipmaker AMD that could result in a 10 percent equity stake in the company. The deal signals a major shift in the artificial intelligence hardware landscape and marks AMD’s largest win to date in its competition with AI chip leader Nvidia.
Announced Monday, the partnership will see OpenAI deploy up to six gigawatts of AMD’s Instinct GPUs across future AI infrastructure. The deployment will begin with a 1-gigawatt rollout scheduled for the second half of 2026. AMD has issued OpenAI a warrant for 160 million shares of common stock, with tranches vesting based on deployment volume and AMD’s share price performance.
If OpenAI fully exercises the warrant, it could hold approximately 10 percent of AMD based on current outstanding shares. While financial terms were not disclosed, both companies confirmed the deal is valued in the billions.
AMD stock surged over 28 percent following the announcement. The deal cements AMD as a strategic partner for OpenAI, which CEO Sam Altman said would help “accelerate progress” in the global AI sector. Altman emphasized the importance of having multiple chip partners to expand capabilities and reduce vendor risk.
This move follows OpenAI’s $100 billion hardware and equity agreement with Nvidia. That partnership, unveiled earlier this year, includes plans to deploy 10 gigawatts of Nvidia GPU power—making it the largest AI infrastructure project on record. However, OpenAI’s new relationship with AMD broadens its supplier base and provides a major boost to AMD’s long-term competitiveness.
The shift could complicate OpenAI’s relationship with Nvidia. Shares of Nvidia dropped more than one percent in Monday trading as news of the AMD deal broke. Meanwhile, OpenAI is also in talks with Broadcom to design custom chips for future AI models, further diversifying its hardware approach.
AMD CEO Lisa Su called the partnership a “true win-win,” citing OpenAI as a flagship customer and highlighting the company’s roadmap for high-performance AI computing.
