AMD stock skyrocketed over 28% on Monday following a major partnership announcement with OpenAI, marking one of the biggest single-day gains for the chipmaker. The multi-year, multi-generation strategic partnership will see OpenAI deploy six gigawatts of AMD GPUs to power its next-generation AI infrastructure.
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Partnership Breakdown
| Category | Details |
|---|---|
| Stock Rise | 30%+ in opening hours |
| Total GPU Capacity | 6 gigawatts across multiple years |
| First Deployment | 1 gigawatt of MI450 GPUs (H2 2026) |
| OpenAI Stake Option | Up to 160M shares (~10% of AMD) |
| Deal Value | Tens of billions in annual revenue |
What’s Driving the Surge?
The first 1 gigawatt deployment of AMD Instinct MI450 GPUs is set to begin in the second half of 2026, positioning AMD as a serious competitor to NVIDIA in the AI chip market. This partnership validates AMD’s growing presence in high-performance computing for artificial intelligence.
As part of the agreement, AMD has given OpenAI the option to buy up to 160 million shares of AMD stock, which amounts to a 10% stake, with tranches vesting as OpenAI buys up to the total 6 gigawatts.
Why This Matters
The deal represents OpenAI’s strategy to diversify its chip suppliers beyond NVIDIA while securing massive computing power for future AI development. The partnership is a testament to OpenAI and the broader AI industry’s voracious appetite for computing power as companies race toward developing AI technology that meets or exceeds human intelligence.
For AMD, this partnership brings:
- Revenue boost: Tens of billions in annual revenue potential
- Market validation: Recognition as a viable alternative to NVIDIA
- Strategic partnership: Long-term commitment from AI’s biggest player
- Stock confidence: Immediate market response showing investor optimism
The MI450 Advantage
The AMD Instinct MI450 GPUs represent the company’s next-generation AI accelerators, designed specifically for large-scale AI training and inference workloads. With OpenAI’s backing, AMD strengthens its position in the competitive AI chip landscape.
For more tech and gaming updates, visit AMD’s official site and TechnoSports.
FAQs
How much did AMD stock rise after the OpenAI partnership announcement?
AMD stock jumped over 30% in opening hours following the partnership news.
When will OpenAI start deploying AMD MI450 GPUs?
The first 1 gigawatt deployment of MI450 GPUs begins in the second half of 2026.
