AMD has officially cemented its status as an AI powerhouse with the announcement of a landmark, multibillion-dollar alliance with OpenAI. This strategic partnership with the world’s most influential AI company validates AMD’s technology and dramatically enhances its position in the competitive chip market.
The deal triggered a massive rally in AMD’s stock, with shares jumping over 30% and adding $80 billion to its market capitalization. This immediate and powerful market reaction signifies a broad consensus that AMD is now a formidable force in providing the essential hardware for the AI era.
The agreement involves a huge purchase order from OpenAI for hundreds of thousands of AMD’s GPUs, which will be used to build out six gigawatts of AI-focused computing infrastructure. This ensures a multi-year revenue stream and establishes AMD’s technology as capable of handling the most challenging workloads.
Further strengthening the alliance, OpenAI has been granted the right to acquire a 10% stake in AMD via a warrant. This innovative deal structure creates a symbiotic relationship, turning a top customer into a strategic partner invested in AMD’s future innovation and market success.
With this partnership as its new foundation, AMD projects a future of explosive growth. The company expects tens of billions in annual revenue from OpenAI and anticipates that the deal’s prestige will attract over $100 billion in additional revenue over the next four years as the industry takes its cues from the AI leader.