AMD Shares Surge 37% on Multi-Billion Dollar Deal with OpenAI
Tech News USA : Advanced Micro Devices (AMD) shares skyrocketed 37% in pre-market trading on October 6, 2025, following the announcement of a multi-billion dollar deal with OpenAI. The partnership will see OpenAI deploy 6 gigawatts (GW) of AMD Graphics Processing Units (GPUs) over multiple years, with the first 1 GW expected to be operational by the second half of 2026.
Deal Details
- OpenAI will deploy 6 GW of AMD GPUs over multiple years
- OpenAI has been issued warrants for up to 160 million shares or 10% stake in AMD, convertible upon achieving specific milestones
- The deal is expected to be accretive from next year and accelerate from 2027
- AMD’s AI GPU revenue is expected to reach $6.55 billion this year
- The partnership is expected to take AMD’s overall topline past $100 billion, although no timeframe was specified
Impact on AMD
The deal solidifies AMD’s position in the AI chip market, driven by the increasing demand for computing power. AMD’s partnership with OpenAI will enable the company to tap into the growing demand for AI infrastructure. According to Lisa Su, AMD’s CEO, the company is “thrilled to partner with OpenAI to deliver AI compute at massive scale.”
OpenAI’s AI Infrastructure Push
OpenAI’s deal with AMD is part of its broader strategy to expand its AI infrastructure and computing capabilities. Sam Altman, OpenAI’s CEO, expressed excitement about partnering with AMD, stating that “the world needs much more compute.” This deal complements OpenAI’s existing partnership with NVIDIA, with plans to increase NVIDIA purchasing over time.
Market Reaction
AMD shares surged 37% in pre-market trading, with the stock price rising to $226.20. The company’s market capitalization currently stands at $267.23 billion, reflecting a 1.55% increase.
Conclusion
The AMD-OpenAI deal marks a significant milestone in the AI chip market, highlighting the growing demand for computing power and infrastructure. As the AI revolution continues to unfold, companies like AMD and NVIDIA are poised to benefit from the increasing demand for AI chips and infrastructure. With OpenAI’s potential 10% stake in AMD, this partnership is expected to have a lasting impact on both companies’ growth trajectories.
