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OpenAI Strikes Multi-Billion Dollar Chip Partnership with AMD
OpenAI, the company behind ChatGPT, has announced a multi-year deal to invest billions of dollars in AMD’s cutting-edge processors, while also acquiring up to a 10% stake in the U.S. chipmaker. The blockbuster agreement, revealed Monday, signals a major shift in the artificial intelligence hardware race as OpenAI diversifies its supplier base beyond market leader Nvidia.
Under the deal, AMD will deliver up to six gigawatts of GPUs over several generations to power OpenAI’s expanding AI infrastructure, beginning with its MI450 Instinct chips in the second half of 2026. The first gigawatt of chips will be deployed by late 2026, with additional tranches vesting as AMD hits production milestones.
Why the AMD Deal Matters for AI
AI’s explosive growth has created a voracious demand for computing power. While Nvidia currently dominates the AI GPU market, OpenAI’s move secures a second critical supply chain partner as it scales up large language models and data centers worldwide.
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AMD CEO Lisa Su, speaking at the Axios AI+ Summit, described the AI boom as a “massive ten-year cycle” of rapid infrastructure build-out reshaping the U.S. economy. “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.
OpenAI & AMD are partnering to deploy 6GW of AMD GPUs.
This enables OpenAI to scale next-gen AI infrastructure powered by AMD Instinct GPUs, beginning with a 1GW deployment in the second half of 2026.https://t.co/0A5hqs0c4z
— OpenAI Newsroom (@OpenAINewsroom) October 6, 2025
Stock Market Reaction: AMD Rockets Higher
Investors cheered the deal. AMD shares surged as much as 35% on Monday, reaching $209.78 by midday trading. The announcement marks a dramatic turnaround for AMD, whose stock had lagged Nvidia’s over the past year but has now climbed 75% in the last six months. Nvidia, by comparison, is up 84% over the same period.
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The tie-up also follows Nvidia’s own $100 billion investment in OpenAI and its $5 billion co-development agreement with Intel, highlighting how AI infrastructure spending is redrawing alliances across the semiconductor industry.
A New Era of AI Hardware Competition
OpenAI, now valued at $500 billion, is one of the most sought-after customers in tech. The company has recently signed a $300 billion cloud equipment deal with Oracle and is securing chip supplies to ensure uninterrupted growth.
With the AMD partnership, OpenAI is sending a clear message: the AI hardware arms race is far from over. As billions pour into data centers and GPU production, Wall Street is watching closely to see whether this surge in investment sparks an “AI bubble” — or cements the foundations of a new industrial revolution.
