AMD wins massive AI chip deal from OpenAI with stock sweetener

On Monday, AMD announced it will supply AI chips to OpenAI in a multi-year deal worth tens of billions of dollars annually that gives the ChatGPT creator an option to acquire up to 10 percent of the chipmaker’s stock for 1 cent per share, Reuters reports. The agreement covers hundreds of thousands of AMD’s AI graphics processing units over several years starting in the second half of 2026.

The deal marks a major endorsement of AMD’s AI hardware and software capabilities as the company competes with Nvidia for dominance in the AI chip market. AMD executives project the agreement will generate more than $100 billion in new revenue over four years from OpenAI and other customers who follow OpenAI’s lead.

“We view this deal as certainly transformative, not just for AMD, but for the dynamics of the industry,” AMD Executive Vice President Forrest Norrod told Reuters on Sunday. The chipmaker will start booking income from the deal next year when OpenAI starts building a 1 gigawatt facility based on AMD’s forthcoming MI450 series chips.

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