Overview

• OpenAI will begin with a 1 gigawatt deployment of AMD’s Instinct MI450 chips in the second half of 2026, with additional capacity rolling out over several years.
• AMD granted OpenAI a warrant for up to 160 million shares at $0.01 each, vesting on deployment milestones and escalating stock-price targets that reach $600.
• AMD executives said the agreement is expected to generate tens of billions of dollars in annual revenue and could drive more than $100 billion in new revenue over four years when considering follow-on demand.
• AMD shares jumped between roughly 27% and 35% in early trading after the announcement, while Nvidia edged lower by about 1%.
• The deal complements OpenAI’s other large compute commitments—including a reported 10 GW plan with Nvidia and major arrangements with Oracle and Broadcom—while leaving funding details for the aggregate buildout undisclosed.