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

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.