Advanced Micro Devices Inc. (AMD) saw its shares surge to record highs after announcing a sweeping new deal with OpenAI to supply artificial intelligence infrastructure that could bring in tens of billions of dollars in new revenue, according to Bloomberg.
Under the definitive agreement unveiled Monday, OpenAI will deploy 6 gigawatts of AMD graphics processing units (GPUs) over multiple years — a move that significantly expands the AI startup’s computing capacity. In exchange, AMD has issued OpenAI a warrant for up to 160 million shares at just one cent each, roughly 10% of AMD’s outstanding stock, which will vest in stages as project milestones are achieved. Some tranches are tied to AMD’s share price reaching $600, far above its last close of $164.67.
“This partnership ensures OpenAI is invested in our success,” said AMD Chief Executive Officer Lisa Su. “The more OpenAI deploys, the more revenue we get — and they share in the upside.” Following the announcement, AMD stock jumped 38% to $226.71 in New York trading, marking its largest intraday gain in nearly a decade. In contrast, Nvidia Corp. shares dipped by about 2.3%.
As Bloomberg notes, this latest agreement underscores the massive infrastructure race now unfolding among AI companies and chipmakers. OpenAI is making historic bets on expanding computing power to meet surging demand for AI tools — a strategy echoed by Nvidia’s own $100 billion investment last year to build next-generation data centers with up to 10 gigawatts of capacity, equivalent to the peak electricity demand of New York City.
Still, questions loom over how OpenAI will finance the enormous capital required for its AI ambitions. CEO Sam Altman has previously said the company aims to spend “trillions” on infrastructure to secure computing resources for the next wave of AI systems, adding that it is exploring “a new kind of financial instrument” to make that vision possible.
The AMD deal cements the chipmaker’s position as a formidable contender in the AI hardware market long dominated by Nvidia. AMD’s AI GPU revenue is projected to hit $6.55 billion this year, and executives expect the partnership with OpenAI to accelerate growth sharply by 2027, potentially pushing AI-related revenue past $100 billion over time.
AMD Chief Financial Officer Jean Hu called the deal “a major strategic alignment,” saying it would “deliver tens of billions in revenue for AMD while boosting earnings per share.” Su added that AMD was “thrilled to partner with OpenAI to deliver AI compute at massive scale,” while Altman described the collaboration as “a major step toward realizing AI’s full potential.”
Despite the optimism, Bloomberg highlighted growing fears of a trillion-dollar AI bubble, with investors questioning whether the enormous costs of AI infrastructure can be sustained. The industry’s breakneck expansion, driven by venture funding, debt, and experimental financing models, has drawn comparisons to the dot-com boom of the late 1990s.
Even so, for AMD, the OpenAI alliance represents a transformative leap — not only boosting its revenue potential but also positioning it as a credible challenger to Nvidia’s dominance in the AI chip market. The first wave of AMD Instinct MI450 GPUs is set to deploy in the second half of next year, marking the beginning of a multiyear rollout that could redefine the global AI hardware landscape.
