OpenAI Strikes Massive GPU Deal with AMD, Potentially Gaining 10% Stake as Stock Surges 24%
Summary
OpenAI secures massive multi-year deal with AMD for 6 gigawatts of Instinct GPUs starting in 2026, receiving warrants for up to 160 million AMD shares that could grant a 10% ownership stake, sending AMD stock soaring 24% as the partnership positions the chipmaker as a key alternative to reduce OpenAI's vendor dependence.
Key Points
- OpenAI reaches deal with AMD to deploy 6 gigawatts of Instinct GPUs over multiple years, starting with 1 gigawatt rollout in second half of 2026
- AMD issues OpenAI warrant for up to 160 million shares with vesting tied to deployment milestones, potentially giving OpenAI 10% ownership stake in the chipmaker
- AMD stock surges 23.71% following announcement of the multi-billion dollar partnership, positioning AMD as core strategic partner to reduce OpenAI's reliance on single vendor