AMD and OpenAI just announced a huge deal, where OpenAI will buy and roll out 6 gigawatts of AMD’s compute power over a few years. That’s worth billions in chips! Instead of straight cash, AMD is giving OpenAI warrants for up to 160 million of its shares, which vest based on milestones like hitting certain stock prices – the last one needs AMD at $600 a share (it closed at $214 recently). If OpenAI hangs onto them all, those shares could be worth about $100 billion, basically paying for the GPUs. Analysts say this smart setup validates AMD’s AI tech and could help it grab more market share against Nvidia.
🧠 A Win-Win for AI Growth
The shares unlock in chunks as OpenAI deploys more compute, starting with 1 gigawatt in late 2026. AMD’s CEO Lisa Su calls it a “win-win” that boosts the whole AI world, while OpenAI’s Greg Brockman says it’s key to scaling up without chip shortages. UBS analyst Timothy Arcuri sees it as a big thumbs-up for AMD’s plans, even if it’s riskier than Nvidia’s deals. AMD’s stock jumped 24% on the news, pushing its value over $330 billion.
📍 Who’s Involved and When?
This kicks off with the first rollout in the second half of 2026, part of OpenAI’s massive 23-gigawatt push. It’s open to all, but really shakes up the AI chip scene globally. AMD gets a foot in the door with a top player like OpenAI.
🧪 A Fresh Twist in Chip Wars
This equity trick flips the usual script – unlike Nvidia’s $100 billion stake in OpenAI, here AMD’s stock funds its own sales. It could speed up AMD’s catch-up to Nvidia and spark more creative deals in AI – one milestone at a time.
