AMD announced that it has reached an agreement with OpenAI to supply specialized processor chips to power its AI infrastructure. The company announced that the first installations will begin in the second half of 2026. Following this development, AMD shares rose over 38 percent.
Billions in Revenue Possible
This collaboration with OpenAI could open up tens of billions of dollars in new revenue streams for AMD. The agreement is considered a strategic step that could both intensify competition in the AI sector and significantly increase AMD’s market share.
As part of the agreement, OpenAI has selected AMD as its primary strategic processing power partner. With this partnership, the first 1-gigawatt installation of AMD’s next-generation Instinct MI450 series chips is scheduled to begin in the second half of 2026.
The statement emphasized that this partnership is a “win-win” for both parties.
The agreement was stated to enable very large-scale AI applications and accelerate the development of the overall ecosystem.
It was also reported that AMD has granted OpenAI the right to purchase up to 160 million shares to align strategic objectives. It was announced that this right will be phased in based on the completion of certain milestones in the partnership.
The impact of the agreement was felt immediately on the stock market. AMD shares closed at $164.67 on Friday and rose over 38 percent to $225.35 in pre-open trading today. Meanwhile, Nvidia shares reversed course, losing 1.7 percent during the same period.
AMD CEO Lisa Su commented on the new agreement, saying, “We are thrilled to join forces with OpenAI.” Su emphasized that this collaboration will make significant contributions to the AI ecosystem.
OpenAI CEO Sam Altman described the partnership as “a critical step in building the processing power necessary to unlock the true potential of AI.” Altman noted that AMD’s expertise in high-performance chips will enable OpenAI technologies to reach more people faster.
