AMD shares rocket 30% after OpenAI takes 10% stake in chipmaker in multibillion-dollar AI hardware deal

AMD stock jumps 30% as OpenAI inks mega GPU deal, deepening its AI hardware push beyond Nvidia.

Advanced Micro Devices (AMD) shares skyrocketed more than 30 percent Monday on NASDAQ after OpenAI announced plans to take a 10 percent stake in the chipmaker as part of a sweeping multibillion-dollar artificial intelligence (AI) hardware partnership.

The deal positions AMD as a core strategic partner in OpenAI’s massive infrastructure expansion and gives Sam Altman’s company a long-term alternative to its current reliance on Nvidia.

Inside the deal: 6 gigawatts of AMD chips and billions in equity

Under the agreement, OpenAI will deploy six gigawatts of AMD’s Instinct GPUs over several years and multiple generations of hardware.

The rollout starts with one gigawatt in late 2026, expanding as OpenAI scales its AI models.

To cement the partnership, AMD issued OpenAI a warrant for up to 160 million shares of its stock, tied to deployment milestones and AMD’s share price.

If OpenAI exercises the full warrant, it would own around 10 percent of AMD, based on current shares outstanding.

OpenAI called the deal a 'multi-billion-dollar' agreement but didn’t disclose the exact amount.

“We have to do this”: OpenAI’s Greg Brockman on why compute is the bottleneck

OpenAI President Greg Brockman told CNBC’s Squawk on the Street that the partnership was necessary to meet growing compute demands.

“This is so core to our mission. If we really want to scale to reach all of humanity, this is what we have to do,” he said.

Brockman admitted that OpenAI has held back new features for ChatGPT and other products because of limited computing power, calling the deal essential to expanding capacity.

Lisa Su: “AI is on a 10-year growth path”

AMD CEO Lisa Su, in her CNBC interview, said the partnership validates AMD’s place in the AI hardware ecosystem.

“At the end of the day, you need the foundational compute to do that,” Su said. “You need partnerships like this that bring the ecosystem together.”

Su added that AMD is “super excited” about the opportunity, calling it a “true win-win” for the AI industry and for OpenAI’s long-term infrastructure roadmap.

A trillion-dollar AI buildout, and a changing power map

The AMD deal comes just two weeks after OpenAI signed a $100 billion equity-and-supply pact with Nvidia, which gave the chip giant a stake in OpenAI and locked in a 10-gigawatt compute supply.

Together, the AMD and Nvidia deals push OpenAI’s AI infrastructure commitments to nearly $1 trillion, reflecting its plan to power the next wave of large-scale models under the “Stargate” project.

With AMD now part of the mix, OpenAI aims to diversify suppliers and reduce its dependence on any single chipmaker, a key step as AI hardware becomes both a strategic asset and a bottleneck for growth.

For AMD, a long-awaited comeback moment

For years, AMD has trailed Nvidia in the AI accelerator race. Monday’s stock rally, its biggest single-day gain in years, signals that investors now see it as a credible rival in the generative AI gold rush.

The OpenAI deal not only delivers massive guaranteed demand but also validates AMD’s Instinct GPU roadmap, giving it the kind of flagship customer endorsement every chipmaker dreams of.

As Su put it, “This creates a true win-win, enabling the world’s most ambitious AI buildout.”