AMD is set to supply artificial intelligence chips to OpenAI in a multi-year partnership projected to generate tens of billions of dollars in annual revenue, while giving the ChatGPT maker an option to purchase up to 10% of the chipmaker. Following the announcement, AMD’s shares surged more than 34% on Monday, resulting in a nearly US$80b increase in market value.
Simply speaking, starting in 2026 H2, AMD will be providing and watching OpenAI deploy hundreds of thousands of its AI chips, which is around 6GW of compute power, as well as building a 1GW facility hosting the upcoming AMD MI450 AI accelerators, with executives estimating over US$100b in revenue over the next 4 years, bolstered by additional demand from other customers.
As part of the agreement, OpenAI will also have the option to buy up to 160 million AMD shares at just one cent each, with tranches vesting upon hitting specific delivery and stock price milestones that rise to $600 a share. Thus, analyst view the partnership as a major vote of confidence in AMD’s AI ambitions despite NVIDIA continuing to control the AI market.
OpenAI, which reportedly generated $4.3 billion in revenue during the first half of 2025, is aggressively expanding its chip strategy by working with AMD and NVIDIA while developing its own AI silicon in collaboration with Broadcom. CEO Sam Altman said the AMD deal will help build the infrastructure needed to meet future AI demands, aligning with his long-term goal of reaching 250 gigawatts of compute power by 2033.
Source: Reuters
