Catenaa, Monday, October 06, 2025- AMD stock soared over 32% on Monday after the company announced a multi-billion-dollar deal with OpenAI, where OpenAI will take a 10% stake in the chipmaker.
The move will see AMD provide upwards of 6 gigawatts of GPUs to the AI juggernaut over several generations, starting with its MI450 chips in the second half of 2026.
OpenAI will take a stake in AMD worth up to 160 million shares, or roughly 10% of the company. Shares will vest in tranches as AMD hits specific milestones. The tranche will vest upon AMD’s deployment of its initial 1 gigawatt of chips.
“Our partnership with OpenAI is expected to deliver tens of billions of dollars in revenue for AMD while accelerating OpenAI’s AI infrastructure buildout,” AMD CFO Jean Hu said in a statement.
“This agreement creates significant strategic alignment and shareholder value for both AMD and OpenAI and is expected to be highly accretive to AMD’s non-GAAP earnings-per-share.”
The deal comes just a few weeks after AMD’s chief rival, Nvidia announced it is investing $100 billion in OpenAI to help the startup continue to build out its own data centers that power its AI offerings.
OpenAI is currently valued at $500 billion, making it the world’s most valuable startup.
AMD stock is now up by over 84% for the year, at $218 per share, after being at $78 per share in April following the announcement of the liberation tariff.
Just last month, OpenAI signed a $300 billion agreement to purchase cloud equipment from Oracle, according to The Wall Street Journal.
The massive influx of spending on AI projects and Wall Street’s enormous investments have raised concerns of an AI bubble.
During Italian Tech Week last week, Amazon founder Jeff Bezos said we’re likely seeing such a bubble, but that AI will still provide benefits to industries and consumers across the globe.
