Overview

• The agreement commits OpenAI to deploy up to 6 gigawatts of AMD Instinct GPUs over several years, beginning with a 1‑gigawatt rollout of MI450 chips in the second half of 2026.
• AMD granted OpenAI a warrant for up to 160 million shares at $0.01 each, vesting in tranches tied to deployment milestones and escalating stock targets that reach $600 for the final tranche.
• AMD executives said the partnership is expected to deliver tens of billions of dollars in revenue, with a projected ripple effect exceeding $100 billion over four years from OpenAI and other customers.
• Investors cheered the announcement as AMD shares jumped roughly 27% to 35% in early trading, while Nvidia slipped modestly.
• The move extends OpenAI’s multi‑supplier strategy following a recent letter of intent with Nvidia for at least 10 GW and large infrastructure arrangements with Oracle and Broadcom, though analysts stress that delivery, funding and timeline execution remain key risks.