AMD Shares Leap by 24% Following a Billion-Dollar OpenAI Partnership Deal
AMD shares witnessed a staggering rise of over 23% on Monday, following the announcement of a groundbreaking deal with OpenAI. This partnership could potentially lead to ChatGPT maker acquiring up to a 10% stake in the chipmaker. The multi-year agreement entails OpenAI deploying 6 gigawatts of AMD’s Instinct GPUs, with the initial rollout of 1 gigawatt scheduled for the second half of 2026.
As a part of this arrangement, AMD has issued OpenAI a warrant for up to 160 million shares. The vesting is tied to both deployment and share price milestones. This deal, worth tens of billions of dollars, stands as one of the largest GPU deployment agreements in the AI industry to date. Following the announcement, AMD’s stock closed at $203.71, adding a whopping $63.4 billion to the company’s market valuation.
“We view this deal as certainly transformative, not just for AMD, but for the dynamics of the industry,” said Forrest Norrod, AMD’s executive vice president. This partnership strategically positions AMD as a key competitor to Nvidia in the AI chip market, as OpenAI begins to diversify its supply chain beyond its primary GPU provider.
Source: CNBC