OpenAI has signed a landmark agreement with chipmaker Advanced Micro Devices to deploy 6 gigawatts of Instinct GPUs over the next few years. The partnership could earn OpenAI a stake of up to 10% in AMD .
AMD (NASDAQ:AMD) shares soared more than 30% premarket, reaching $226.71, their biggest intraday gain in nearly a decade. Shares were up 27.7% as of early afternoon on Monday, October 6, 2025, at last check.
The deal will make AMD a supplier to OpenAI and a direct rival to Nvidia (NASDAQ:NVDA) in the generative AI chip sector.
OpenAI will begin installing 1 gigawatt in 2026, with progressive expansions up to 6 gigawatts. According to President Greg Brockman, “this is essential to our mission to scale for all humanity.” The company faces capacity constraints that restrict the advancement of new ChatGPT features.
As part of the agreement, AMD granted OpenAI warrants for up to 160 million shares, exercisable as technical and commercial milestones are achieved. The plan foresees mutual revenue gains as chip use expands.
CEO Lisa Su said the deal “marks a decade of AI growth” and creates “a true win-win situation.” AMD expects tens of billions of dollars in new annual revenue, potentially exceeding $100 billion in total.
The partnership follows the $100 billion agreement between Nvidia and OpenAI, which included 10 gigawatts of infrastructure. Unlike Nvidia, AMD will diversify its chip supply and reduce OpenAI’s reliance on a single manufacturer.
The project is part of OpenAI’s Stargate plan, which foresees $1 trillion in data center investments by 2030. The first facilities operate in Texas, with expansions in New Mexico and Ohio.
Analysts say the deal symbolizes the maturation of the AI market, but it also raises concerns about a potential trillion-dollar bubble, similar to the dot-com bubble of the 2000s.
Advanced Micro Devices stock price
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.