Home / Business and Economy / AMD Secures 10% Stake in OpenAI with Landmark 6GW Chip Deal
AMD Secures 10% Stake in OpenAI with Landmark 6GW Chip Deal
6 Oct
Summary
- AMD to supply 6GW worth of AI chips to OpenAI
- OpenAI issued a warrant for up to 160M AMD shares at 1 cent each
- AMD's stock price surged 24% following the deal's announcement
On October 6th, 2025, AMD and OpenAI announced a landmark deal that will see the chipmaker supply 6 gigawatts worth of AI chips to the AI research company. The agreement includes an initial 1 gigawatt deployment of AMD's Instinct MI450 GPU next year.
As part of the deal, AMD has issued OpenAI a warrant for up to 160 million shares, roughly 10% of the company, at a price of just one cent per share. These shares will vest in multiple tranches as AMD's stock price rises, with the final tranche requiring the share price to triple to $600.
The news of the deal sent AMD's share price surging 24% to $204.50 in premarket trading on Monday morning. This significant boost underscores the strategic importance of the partnership for AMD, as it solidifies the company's position as a leading provider of cutting-edge AI hardware.
The collaboration between AMD and OpenAI is expected to accelerate the development and deployment of advanced AI systems, further cementing OpenAI's position as a pioneer in the field of artificial intelligence. This landmark agreement highlights the growing demand for powerful, energy-efficient AI computing solutions and AMD's ability to meet the needs of the rapidly evolving AI industry.
