Shares of Advanced Micro Devices (AMD) skyrocketed nearly 25% today following the announcement of a groundbreaking partnership with OpenAI, marking one of the most consequential alliances yet in the artificial intelligence hardware race. The multi-year agreement will see AMD supply OpenAI with an estimated six gigawatts of AI compute power, powered by its forthcoming Instinct MI450 GPUs and next-generation rack-scale systems.
The scale of this deal is staggering. Six gigawatts of compute capacity represents an enormous leap in data-center power demand—roughly equivalent to the combined output of several large nuclear power plants—and underscores the explosive growth of AI model training and inference workloads. For AMD, this partnership positions its GPU architecture as a central pillar in powering OpenAI’s expanding infrastructure for products like ChatGPT, DALL-E, and future generative systems. Analysts described it as “a generational validation” of AMD’s AI hardware capabilities, signaling that the company is no longer playing catch-up to Nvidia but rather emerging as a critical co-driver of the next AI era.
Under the terms of the deal, OpenAI will receive warrants to purchase roughly 160 million shares of AMD at a nominal price, representing close to 10% ownership if fully vested. These warrants are tied to performance milestones, ensuring the benefits align with actual deployment progress and share-price thresholds. While such a structure introduces potential dilution, investors interpreted it as a long-term alignment mechanism rather than a short-term risk. The market’s reaction was immediate, with AMD’s stock climbing more than $40 per share as trading volume spiked to record levels.
Beyond the financial optics, the partnership carries deep strategic implications. By entrusting AMD with a project of this magnitude, OpenAI is signaling an effort to diversify its supply chain and reduce its dependence on Nvidia’s dominant GPU ecosystem. For AMD, the opportunity is transformative—giving it access to one of the most demanding and high-visibility AI workloads in the world, and potentially generating tens of billions of dollars in future revenue. The six-gigawatt commitment cements AMD’s hardware as the backbone of OpenAI’s forthcoming supercomputing clusters, effectively placing the company at the center of the global race to scale artificial intelligence infrastructure.
