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Published on
October 6, 2025
5 min read
What Does OpenAI’s Chip Deal with AMD Mean for the Chipmaker?
In Focus
- OpenAI has signed a chip deal with chipmaker, AMD
- The new deal will see AMD supply OpenAI with AI chips
- OpenAI gets the option of getting a 10% stake in AMD in the latest agreement
OpenAI has signed a chip deal with AMD. Under the deal, the ChatGPT maker has the option of getting a 10% stake in AMD. According to CNBC, news of the deal caused AMD stock to soar more than 30% on October 6, 2025.
How Will AMD Benefit from the OpenAI Chip Deal?
The latest deal gives OpenAI a chance to hold a stake in one of NVIDIA’s top competitors. Under the deal, AMD will supply AI GPUs to OpenAI. The AI startup will acquire and deploy 6 gigawatts of AMD Instinct GPUs over several years and in different hardware generations.
“We are thrilled to partner with OpenAI to deliver AI compute at a massive scale. This agreement creates a true win-win enabling the world’s most ambitious AI buildout and advancing the entire AI ecosystem,” AMD’s Chief Executive Lisa Su said.
AMD’s AI GPU supply could commence soon. According to the chipmaker, OpenAI will build a one-gigawatt facility using its upcoming MI45O chip series starting 2026. The chipmaker says the new deal serves as a vote of confidence for AMD’s AI semiconductors and software.
“We view this deal as certainly transformative, not just for AMD, but for the dynamics of the industry,” AMD Executive VP Forrest Norrod said.
AMD as OpenAI’s Strategic Partner
The deal makes AMD OpenAI’s strategic partner and is among the largest chip deployment partnerships in the AI industry. From a supply chain point of view, the deal will relieve industry-wide pressure and reduce OpenAI’s dependence on a single supplier.
Early last month, OpenAI partnered with Broadcom to produce its own chips. The deal will see the initial batch of chips shipped at the beginning of 2026.
The OpenAI-AMD deal reflects the growing appetite for computing power among AI firms as the race towards AI superintelligence heats up. Through the Stargate project, OpenAI is seeking to build one the largest AI infrastructure in the AI sector. Last week, OpenAI partnered with Samsung, SK Hynix for the supply of memory chips for the Stargate project.
About two weeks ago, OpenAI signed a $100 billion deal with NVIDIA. The deal established the AI chipmaker’s role in powering OpenAI’s next generation models and gave it a stake in the AI startup.
OpenAI-AMD Chip Deal at a Glance
- AMD allocates OpenAI up to 160 million shares of common stock
- New deal makes AMD OpenAI’s strategic partner
- OpenAI to acquire and deploy 6 gigawatts of AMD Instinct GPUs
- AMD stock to be availed in stages based OpenAI’s utilization of AMD’s technology
How Will AMD’s Stock Option Work?
As part of the deal, AMD allocated OpenAI up to 160 million shares of common stock. The shares will be made available in stages based on how much OpenAI uses AMD’s technology and AMD’s AI stock outlook.
The initial batch of shares will be released when OpenAI completes the first gigawatt of deployment. Additional shares will be unlocked as OpenAI expands to 6 gigawatts and hits key technical and business milestones required for wider rollout. OpenAI’s 10% AMD stake option will only become available if the AI startup executes the entire warrant.
“AMD’s leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster,” OpenAI CEO Sam Altman said.
Although the AI startup confirmed that the deal is worth billions of dollars, it did not reveal the actual amount.
What’s the Impact on AMD Stock?
AMD share performance today points to rising investor confidence in the American chipmaker.
AMD stock gained over 30% on October 6, 2025 as company executives said the deal would generate billions of dollars in revenue.
The chipmaker has been investing in accelerator chips needed to train and run advanced AI models, an area where AMD’s biggest competitor NVIDIA continues to dominate. In 2024, sales from NVIDIA’s data center unit amounted to $115 billion.
In 2025, AMD expects revenue from AI-related sales to amount to $6.5 billion. Although the chipmaker’s second quarter revenues surpassed analyst estimates, its earnings per share disappointed investors.
