AMD Skyrockets Over 32% on OpenAI Deal That Could Reshape AI's Future

Advanced Micro Devices AMD shares surged this morning, after the chipmaker announced a multi-year partnership with OpenAI that could redefine its position in the AI infrastructure race. Under the agreement, OpenAI will deploy 6 gigawatts of AMD GPUs over several years, a deal that executives said could generate tens of billions of dollars in new revenue for AMD. As part of the arrangement, OpenAI received a warrant to buy up to 160 million AMD shares at a penny eacharound 10% of the company's current floatvesting as performance milestones are met. AMD CEO Lisa Su emphasized that the deal was structured to align incentives, ensuring OpenAI is motivated for AMD to be successful. Following the announcement, AMD stock jumped more than 32.5% at 9.35am today, marking what could be its strongest single-day move in nearly a decade.

For OpenAI, the partnership adds another layer to its rapid infrastructure expansion. The move follows Nvidia's NVDANVDA commitment of up to $100 billion to build AI data centers with 10 gigawatts of power capacity, underscoring how aggressively the industry is scaling compute resources. AMD CFO Jean Hu said the OpenAI deal could materially lift earnings per share and deepen the company's long-term strategic positioning in AI chips, with deployment expected to begin in the second half of next year using AMD's Instinct MI450 processors. Each gigawatt milestone will trigger a new vesting tranche, linking AMD's success directly to OpenAI's infrastructure rollout.

Still, the announcement lands amid rising caution over whether the AI investment boom can sustain its current pace. OpenAI CEO Sam Altman has spoken about plans to spend trillions on compute infrastructure, a scale some market watchers say recalls the late-1990s tech bubble. For AMD, the OpenAI partnership could be the breakthrough that helps it narrow the gap with Nvidia's AI dominance. Yet, as capital continues to pour into AI hardware, investors are left asking a broader questionhow long this extraordinary buildout can fund itself before the returns start to flatten.