AMD & OpenAI Ink Major Deal: Stock Surges 23% on AI GPU Partnership
AMD has inked a significant partnership with OpenAI, focusing on Instinct GPUs and 'rack-scale AI solutions'. This collaboration, born from joint development work, has sparked a surge in AMD's stock price, up over 23% in pre-market trading.
The partnership, closed in 2025, grants OpenAI the option to acquire up to 160 million AMD shares, potentially reaching 10% of the company, contingent on technical milestones and stock price targets. This isn't OpenAI's sole focus, however; it continues to collaborate with Nvidia, Broadcom, and Microsoft.
The first 1-gigawatt cluster based on the new Instinct MI450 series is slated for the second half of 2026. AMD has also signed a long-term supply agreement with OpenAI, ensuring a steady flow of Instinct chips for multiple generations.
The AMD-OpenAI partnership promises up to six gigawatts of computing power for OpenAI, with the potential for OpenAI to acquire a significant stake in AMD. This deal signals AMD's growing influence in the AI sector, as it continues to develop cutting-edge GPUs for AI applications.
