A stunning provision within the new multibillion-dollar deal between OpenAI and AMD grants the AI leader the ability to acquire a 10% stake in the chipmaker for a virtually negligible cost. AMD has issued a warrant allowing OpenAI to buy up to 160 million shares for just one cent each, a move that fundamentally intertwines the two companies’ futures.
This unique financial arrangement is part of a broader strategic pact designed to fuel OpenAI’s relentless pursuit of advanced AI. The core of the deal is a massive purchase of AMD’s AI chips, with hundreds of thousands of GPUs slated for deployment starting in late 2026. This hardware is essential for OpenAI’s work in building and training the next generation of large language models and other AI systems.
The agreement is a resounding endorsement of AMD’s technology, powerful enough to convince OpenAI to not only become a major customer but also a potential major shareholder. The immediate market reaction validated this confidence, as AMD’s stock price surged by over 30%, adding a colossal $80 billion to its market value. The deal is seen as transformative, positioning AMD as a formidable competitor in the high-stakes AI chip market.
For OpenAI, the deal offers a solution to what its CEO, Sam Altman, calls the biggest constraint on its growth: the availability of computing power. The planned deployment is massive, totaling six gigawatts of power, enough to support the energy needs of five million American homes. This illustrates the almost utility-scale infrastructure required for leading-edge AI development.
AMD executives are forecasting a massive financial upside, predicting tens of billions in annual revenue directly from this deal. They also anticipate a powerful halo effect, with Mat Hein, AMD’s strategy chief, noting that OpenAI’s influence as a “pioneer” will encourage a broader ecosystem of customers to adopt AMD’s AI platforms, driving over $100 billion in revenue in the coming years.