AMD has secured a transformative multi-year agreement to supply OpenAI with hundreds of thousands of advanced AI chips, a move expected to generate tens of billions of dollars in annual revenue and reshape the competitive landscape against Nvidia. The deal grants OpenAI the option to purchase up to 10% of AMD, signaling a deep strategic alignment between the two companies.
Shares of AMD surged more than 34% following the announcement, adding $80 billion in market value and marking a one-year high. Forrest Norrod, AMD’s executive vice president, described the deal as transformative for both the company and the broader AI industry. Mat Hein, AMD’s strategy chief, emphasized the ripple effect across the ecosystem, while OpenAI CEO Sam Altman said the partnership will accelerate infrastructure needed to power the next generation of AI.
The agreement centers on AMD’s forthcoming MI450 chips, with initial shipments beginning in 2026 and powering facilities equivalent to six gigawatts of capacity. Analysts project AMD’s revenue could exceed $100 billion over four years, with OpenAI’s stake vesting through performance-based milestones. The deal underscores the escalating demand for compute in the race toward artificial general intelligence.
