After the announcement that OpenAI’s next AI data centres will be powered by AMDs GPUs, the stock price of AMD rose to 35% to $222 per share.
OpenAI signs a multibillion-dollar deal with the US chip designer AMD to power next generation AI data centres using AMD’s Instinct GPUs. Its five-year agreement, where AMD provides 6 GW of computing capacity, to expand OpenAI’s AI infrastructure.
Under the agreement, AMD will supply its Instinct GPU line, beginning with the MI450. OpenAI is expected to receive its first 1 gigawatt of capacity in the second half of 2026, when the MI450 chips are deployed. The total 6GW capacity is equivalent to the power needed for about 4.5 million homes.
AMD says the MI450 series outperforms Nvidia’s upcoming Rubin CPX chips through joint hardware and software optimisation with OpenAI. The company already provides MI300X and MI355X GPUs for OpenAI’s existing AI workloads, including large language models that rely on high memory bandwidth and capacity.
As part of the supply agreement, OpenAI receives the option to purchase up to 160 million equity of AMD stock, equal to about 10% ownership. More shares become available as AMD provides more capacity over time. The final portion will only be available if AMD’s stock price reaches $600 per share. AMDs share rose to 35% to $222.24 per share after this deal.
The partnership supports OpenAI’s Stargate initiative, which targets 7GW of total computing power across five global data centres. OpenAI continues to expand its hardware partnerships with Nvidia, Broadcom, Samsung Electronics, SK Hynix, Oracle, and SoftBank, as it scales its compute network to support next-generation AI systems.
