AMD has entered into a major agreement with OpenAI involving the supply of AI chips worth tens of billions of dollars. This multi-year contract calls for AMD to provide OpenAI with hundreds of thousands of AI chips. The agreement also includes an interesting option allowing OpenAI to purchase up to 10 percent of AMD shares for just 1 cent per share.
The agreement focuses on expanding the partnership, with AMD supplying a total of 6 gigawatts of computing power in the form of AI chips. These chips will be used for training and inference of advanced artificial intelligence models. According to information available from the 2025 announcement, this collaboration represents an unprecedented scale of AI hardware deployment. OpenAI plans to build a 1-gigawatt facility that will use AMD’s upcoming MI450 chips starting in 2026. This project will require enormous amounts of energy and investment to support the next generation of AI technologies.
Impact on Shares and the Market
AMD shares rose by more than 34% following the announcement of the agreement, marking their largest single-day gain since 2016. This surge added approximately $80 billion to the company’s market value, equivalent to roughly CZK 1.84 trillion. Investors see enormous potential in this contract, as it could generate more than $100 billion in new revenue for AMD over four years, not only from OpenAI but also from other customers. This growth is crucial for AMD given its competition with Nvidia.
AMD CEO Lisa Su described the agreement as an important milestone for both companies and the entire artificial intelligence industry. According to her, it highlights the growing demand for powerful hardware that supports advanced AI models. OpenAI President Greg Brockman also commented on the announcement, emphasizing the importance of specialized hardware for future innovation in artificial intelligence. These partnerships are helping OpenAI expand its infrastructure for large-scale AI projects.
Source: webpronews.com
