AMD Shares Soar Double Digits After Striking Multi-Billion GPU Deal With OpenAI

Oct 6 - A multi-year agreement will see Advanced Micro Devices AMD supply OpenAI with GPUs to power large-scale AI workloads, a pact that could unlock significant revenue for AMD.

The deal commits OpenAI to deploy up to six gigawatts of AMD graphics processing units across multiple years and generations, and includes a warrant for up to 160 million AMD shares that vests as deployments and targets hit.

Shares of AMD jumped about 25% in premarket trading following the announcement.

Vesting starts with the first one-gigawatt deployment and opens further tranches as purchases scale to 6 gigawatts. Some tranches also depend on AMD reaching certain share-price thresholds and on OpenAI meeting technical and commercial milestones required for wide-scale deployments. Bloomberg reported a future tranche tied to a $600 share-price level; AMD closed last Friday near $164.67.

AMD executives say the partnership will help accelerate compute capacity for AI while creating meaningful revenue opportunities. Sam Altman, OpenAI's CEO, called the arrangement an important step toward expanding infrastructure. Nvidia NVDA similarly pursues large-scale AI deals, having announced plans to invest heavily in OpenAI-related data centers. Market watchers say chip partnerships will shape AI infrastructure competition.