AMD Shares Surge on Landmark Multi-Year AI Chip Deal with OpenAI

Advanced Micro Devices (NASDAQ: AMD) surged 25% in premarket trading after announcing a multi-year strategic partnership with OpenAI to supply cutting-edge artificial intelligence (AI) chips — a deal that could generate tens of billions of dollars in annual revenue for the chipmaker.

Strategic Partnership Details

The agreement grants OpenAI the option to acquire up to 10% of AMD’s equity, underscoring the depth of collaboration between the two technology giants. The deal involves deploying hundreds of thousands of AMD’s GPUs, representing a combined six gigawatts of computing power, over several years starting in the second half of 2026.

OpenAI also plans to construct a one-gigawatt AI data center utilizing AMD’s next-generation MI450 series chips beginning next year. This large-scale buildout will significantly expand OpenAI’s infrastructure to meet surging demand for AI training and inference workloads.

Executive Statements

Dr. Lisa Su, AMD’s Chair and CEO, highlighted the transformative nature of the partnership:

“We are thrilled to partner with OpenAI to deliver AI compute at massive scale. This partnership brings the best of AMD and OpenAI together to create a true win-win enabling the world’s most ambitious AI buildout and advancing the entire AI ecosystem.”

Sam Altman, OpenAI’s CEO, emphasized that the collaboration would ensure sufficient compute capacity for OpenAI’s expanding suite of models and tools. Meanwhile, Greg Brockman, OpenAI’s co-founder and president, added that working with AMD would allow the company

“to scale to deliver AI tools that benefit people everywhere.”

Market Reaction

The announcement fueled a strong rally in AMD’s stock, which climbed sharply in pre-market trading, reflecting investor optimism over the company’s expanding footprint in the high-growth AI sector.

The partnership is also viewed as a strategic counter to Nvidia’s dominance in the AI accelerator market, positioning AMD as a key alternative supplier amid surging global demand for AI hardware.

Analysts suggest the deal could reshape the competitive dynamics of the AI semiconductor industry, with AMD now poised to capture a significant share of the multibillion-dollar data center and AI compute market over the coming years.

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AMD Shares Jump on Landmark Multi-Year AI Chip Deal with OpenAI

Advanced Micro Devices (NASDAQ: AMD) surged 25% in premarket trading after announcing a multi-year agreement with OpenAI to supply advanced artificial intelligence chips, a deal projected to generate tens of billions of dollars in annual revenue.

Under the terms of the partnership, OpenAI will have the option to acquire up to 10% of AMD’s equity. The agreement includes the deployment of hundreds of thousands of AMD’s GPUs, equivalent to six gigawatts of computing capacity, over several years beginning in the second half of 2026.

The collaboration also involves OpenAI’s plan to build a one-gigawatt data center powered by AMD’s next-generation MI450 series chips, which will launch next year. The project aims to provide the infrastructure needed to meet rising global demand for artificial intelligence applications.

The partnership strengthens AMD’s position as a key competitor to Nvidia in the AI semiconductor market, providing OpenAI with an alternative supplier as demand for AI accelerators continues to surge.

Market reaction was immediate, with AMD shares soaring as investors welcomed the company’s deepening role in the AI ecosystem. Analysts noted that the deal could mark a turning point for AMD’s data center business, unlocking significant growth potential over the next several years.

The collaboration underscores the growing convergence between chipmakers and AI firms as the global race for computational power intensifies, setting the stage for what could become one of the most significant alliances in the AI hardware space.