Catenaa, Tuesday, October 14, 2025- Advanced Micro Devices shares surged more than 27% last Monday after OpenAI announced a multi-year partnership to purchase six gigawatts of AMD GPU chips and potentially acquire a 10% stake in the company.
The agreement includes an initial gigawatt deployment set for the second half of 2026, with the remaining capacity phased over future hardware generations. AMD will also issue warrants for up to 160 million shares to OpenAI, vesting upon the achievement of specific milestones.
OpenAI cofounder Sam Altman described the partnership as a pivotal step toward expanding AI compute capacity, emphasizing that AMD’s high-performance chips will accelerate AI development and deployment.
AMD Chair and CEO Dr. Lisa Su echoed the optimism, calling the collaboration a “true win-win” that will advance the global AI ecosystem.
The announcement underscores AMD’s intensified efforts to compete with Nvidia, which currently dominates the AI chip market.
With the AI arms race intensifying, other tech giants, including Google and Amazon, are developing their own AI hardware solutions, increasing competitive pressure. OpenAI is simultaneously working with Broadcom on in-house chip development and has an existing agreement with Nvidia for up to a $100 billion investment, which has yet to close.
The stock reaction reflected Wall Street enthusiasm for the strategic partnership, with AMD shares briefly hitting $220.44 in early trading before settling slightly lower but maintaining substantial gains.
Analysts view the deal as a significant signal of OpenAI’s commitment to scale its computing infrastructure and accelerate AI advancements across industries.
