Overview

• OpenAI signed a long-term agreement for large volumes of AMD AI processors, with initial deliveries scheduled for the second half of 2026.
• The plan begins with roughly 1 gigawatt of compute capacity and could scale to as much as 6 gigawatts over subsequent tranches, according to multiple reports.
• AMD granted OpenAI a milestone-linked warrant to purchase up to 160 million AMD shares at $0.01 each, equal to about a 10% stake if fully vested.
• Vesting starts with the first shipment of MI450 accelerators and includes stock-price targets that rise to $600 for the final tranche to unlock.
• Shares of AMD jumped about 25% in premarket trading following the announcement, as the deal positions AMD as a significant alternative supplier to Nvidia for OpenAI.