AMD’s Landmark Partnership with OpenAI: A Game-Changer in the AI Chip Market
AMD has secured a groundbreaking partnership with OpenAI, a move that could significantly transform the landscape of the artificial intelligence chip market. The deal, which was announced on October 6, 2025, entails the deployment of 6 gigawatts of AMD’s Instinct GPUs over a span of several years. The initial rollout of 1 gigawatt is set to commence in the latter half of 2026.
This monumental agreement is projected to generate tens of billions of dollars in revenue for AMD. It also includes an unprecedented equity component – OpenAI is set to receive warrants for up to 160 million AMD shares. This could potentially provide OpenAI with a 10% stake in the chipmaker. Following the announcement, AMD’s stock experienced a significant surge, soaring 24% and adding $63.4 billion to its market valuation. This increase brought the company’s worth to a staggering $330.6 billion.
“This partnership brings the best of AMD and OpenAI together to create a true win-win enabling the world’s most ambitious AI buildout,” stated AMD CEO Lisa Su. The deal positions AMD as a formidable contender against Nvidia’s dominance in the AI chip market. Currently, Nvidia controls over 90% of the GPU market for AI workloads.
Source: AMD Investor Relations