Shares of Advanced Micro Devices (AMD) surged 25% in premarket trading after the semiconductor giant announced a multi-year agreement to supply artificial intelligence chips to OpenAI. The partnership marks one of AMD\u2019s largest ventures in the AI space and is expected to deliver tens of billions of dollars in annual revenue.<\/p>\n\n\n\n
As part of the deal, OpenAI will have the option to acquire up to 10% of AMD\u2019s equity, further deepening the collaboration between the two companies. The agreement underscores OpenAI\u2019s ambition to expand its AI infrastructure at unprecedented scale while positioning AMD as a key player in the global race for AI compute power.<\/p>\n\n\n\n
Under the terms of the partnership, AMD will deploy hundreds of thousands of its high-performance graphics processing units (GPUs)\u2014equivalent to roughly six gigawatts of computing capacity\u2014over several years beginning in the second half of 2026. OpenAI also plans to build a one-gigawatt data center powered by AMD\u2019s next-generation MI450 series chips, which are slated for release next year.<\/p>\n\n\n\n
\u201cWe are thrilled to partner with OpenAI to deliver AI compute at massive scale,\u201d said Dr. Lisa Su, AMD\u2019s chair and CEO. \u201cThis partnership brings the best of AMD and OpenAI together, enabling one of the world\u2019s most ambitious AI buildouts and advancing the broader AI ecosystem.\u201d<\/p>\n\n\n\n
OpenAI CEO Sam Altman echoed that sentiment, emphasizing the collaboration\u2019s strategic significance. \u201cThis partnership is a major step in building the compute capacity needed to realize AI\u2019s full potential,\u201d Altman said.<\/p>\n\n\n\n
Greg Brockman, OpenAI\u2019s co-founder and president, added that working with AMD will help the company \u201cscale to deliver AI tools that benefit people everywhere.\u201d<\/p>\n\n\n\n
The announcement reinforces AMD\u2019s growing role as a major competitor to Nvidia in the rapidly expanding AI chip market.<\/p>\n\n\n\n