AMD Forges AI Alliance with OpenAI in Landmark Chip Deal

A groundbreaking partnership between AMD and OpenAI is reshaping the competitive landscape of the artificial intelligence chip market. The announcement triggered a massive 34 percent single-day surge in AMD’s stock value—the most significant daily gain the company has witnessed in over nine years.

The multi-year agreement centers on OpenAI’s commitment to deploy 6 gigawatts of AMD Instinct GPU computing capacity. To put this enormous scale into perspective, this power requirement equals the electricity consumption of 5 million American households and triples the output capacity of the Hoover Dam. The initial deployment will feature AMD’s Instinct MI450 series, scheduled for launch in the second half of 2026.

What makes this arrangement particularly innovative is its financial structure. OpenAI has secured warrants providing... Read more...