AMD Signs Chip Deal With OpenAI

AMD has struck a multi-year deal to supply OpenAI with hundreds of thousands of advanced AI chips, a move that sent its stock soaring over 34%, its biggest one-day jump since 2016. The agreement allows OpenAI to purchase up to a 10% stake in AMD for just one cent per share through performance-based warrants. Starting in 2026, AMD will deliver its forthcoming MI450 GPUs, which are expected to generate tens of billions of dollars in annual revenue and more than $100 billion over four years from OpenAI and other clients. Analysts view the pact as a validation of AMD’s AI ambitions, although Nvidia remains the dominant player in this space. The deal reflects the massive global race to secure computing power for next-generation AI systems.

Reuters, Max A. Cherney and Arsheeya Bajwa – AMD signs AI chip-supply deal with OpenAI, shares surge over 34% – 6th October 2025