- AMD will supply OpenAI with hundreds of thousands of MI450 GPUs for data centers.
- OpenAI gains the right to purchase up to 10% of AMD’s shares at $0.01 per share.
- AMD’s revenue from collaboration with OpenAI could exceed $100 billion over several years.
AMD and OpenAI Enter Strategic Agreement for AI Supply
AMD and AI leader OpenAI have announced the signing of a multi-year contract under which the chip manufacturer will supply hundreds of thousands of MI450 series graphics processors. The total power of this equipment will reach approximately 6 GW, with deliveries starting in the second half of 2026.
This is reported by Finway
Following the announcement of the agreement, AMD’s shares rose by 41%, marking the largest single-day increase since 2016. As of October 2025, the price of one share of the company is $206.8, and its market capitalization has exceeded $336 billion.
Financial Terms and Competition in the AI Chip Market
Under the agreement, OpenAI gains the right to purchase up to 160 million shares of AMD (approximately 10% of the company’s equity) at a nominal price of $0.01 per share. This option will be activated in stages after fulfilling chip supply commitments and achieving certain target metrics, including AMD’s share price reaching $600.
AMD’s management expects that the partnership with OpenAI will generate tens of billions of dollars in annual revenue for the company, with total profits over four years potentially exceeding $100 billion. In comparison, according to LSEG forecasts, AMD’s revenue in 2025 is expected to be around $32.78 billion.
AMD’s Executive Vice President Forrest Norrod described the agreement as “transformational not only for AMD but for the entire AI industry.” He emphasized that this partnership strengthens AMD’s competitive position against Nvidia.
It is worth noting that in September, Nvidia also signed an agreement with OpenAI, anticipating the supply of AI systems with a capacity of 10 GW, but without acquiring equity in OpenAI.
OpenAI CEO Sam Altman expressed confidence that collaboration with AMD will enable the construction of a powerful infrastructure for developing next-generation AI models. According to media reports, OpenAI is simultaneously negotiating with Broadcom and developing its own production of specialized AI chips.
Analysts point out that this agreement intensifies competition among high-performance processor manufacturers and demonstrates OpenAI’s commitment to reducing dependence on Nvidia products.
Recall that earlier, Huawei presented its own three-year plan aimed at leading the development of AI chips and outperforming Nvidia.