AMD shares surge after AI chip deal with OpenAI

Investing.com -- Advanced Micro Devices shares have surged 25% in premarket trading after the company announced a multi-year agreement to supply artificial intelligence chips to OpenAI, a deal expected to generate tens of billions of dollars in annual revenue.

The agreement reportedly includes an option for OpenAI to acquire up to 10% of the chipmaker’s equity.

The partnership will see the deployment of hundreds of thousands of AMD’s graphics processing units, equivalent to six gigawatts, over several years beginning in the second half of 2026.

OpenAI plans to construct a one-gigawatt facility using AMD’s forthcoming MI450 series chips starting next year.

"We are thrilled to partner with OpenAI to deliver AI compute at massive scale," said Dr. Lisa Su, chair and CEO of AMD. "This partnership brings the best of AMD and OpenAI together to create a true win-win enabling the world’s most ambitious AI buildout and advancing the entire AI ecosystem."

OpenAI chief executive Sam Altman said the partnership would help the company build sufficient AI infrastructure to meet its requirements.

“This partnership is a major step in building the compute capacity needed to realize AI’s full potential,” Altman stated.

Meanwhile, Greg Brockman, co-founder and president of OpenAI, said that working alongside AMD will allow the company “to scale to deliver AI tools that benefit people everywhere.”

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