AMD Shares Surge 23% as OpenAI Plans Major Stake in AI Chipmaker

Shares of Advanced Micro Devices (AMD) soared nearly 24 percent on Monday after the chipmaker announced a landmark partnership with OpenAI, potentially giving Sam Altman’s company a 10 percent ownership stake in AMD. The deal marks one of the largest GPU deployment agreements in the artificial intelligence industry to date.

Under the multi-year arrangement, OpenAI will deploy up to 6 gigawatts of AMD’s Instinct GPUs, beginning with a 1-gigawatt rollout in 2026. AMD has issued OpenAI a warrant for up to 160 million shares of common stock, which will vest as deployment and performance milestones are met. If fully exercised, OpenAI’s stake would represent roughly 10 percent of AMD’s current outstanding shares.

“We have to do this,” said Greg Brockman, OpenAI’s president. “If we truly want to scale AI for all of humanity, we need the compute power to make it possible.” Brockman added that limited hardware supply is already slowing the rollout of new features across products like ChatGPT.

The partnership positions AMD as a core supplier in OpenAI’s infrastructure roadmap and diversifies OpenAI’s reliance on Nvidia, which recently agreed to a $100-billion equity-and-supply arrangement with the AI firm. AMD’s CEO Lisa Su called the collaboration a long-term growth opportunity for both companies. “AI is on a decade-long expansion path,” Su told CNBC. “Partnerships like this ensure the best technologies come together to power that future.”

Analysts say the deal underscores the growing circular economy within the AI sector, where capital, equity, and compute resources circulate among a handful of dominant players. Nvidia provides capital and chips, Oracle helps build data infrastructure, and AMD now becomes a key supplier.

The agreement also strengthens OpenAI’s ambitious Stargate project, a vast AI data-center expansion already underway across the United States. The first facility in Texas is operational, with upcoming builds in New Mexico, Ohio, and the Midwest expected to feature AMD hardware alongside Nvidia systems.

For AMD, the OpenAI partnership signals a major validation of its Instinct GPU roadmap and a strategic win in the competitive race for AI compute dominance.