AMD Shares Soar on OpenAI Deal for Next-Gen AI Systems
Advanced Micro Devices Inc. (AMD) shares have soared after the company announced a significant deal with OpenAI for next-generation AI systems. The agreement comes as OpenAI's valuation reaches a staggering $500 billion, making it the world's most valuable private company.
Under the terms of the deal, OpenAI will initially use 1 gigawatt of AMD's upcoming MI450 chips, with deployment set to begin in the second half of 2026. This is in addition to AMD's previous commitment to provide 6 gigawatts of computing power using its graphics processing units (GPUs) for OpenAI's next-generation AI systems.
OpenAI CEO Sam Altman recently discussed the potential impact of GPT-5 on entrepreneurs in an interview with Maria on 'Mornings with Maria'. Meanwhile, AMD has issued OpenAI a warrant for up to 160 million shares of AMD common stock, which will vest as certain milestones are achieved.
In a strategic move, Nvidia has announced plans to invest up to $100 billion in OpenAI, following a partnership established in September 2025. Nvidia's CEO, Jensen Huang, spearheaded this investment. Previously, Nvidia backed OpenAI in a $6.6 billion funding round in October 2024. The partnership between OpenAI and Nvidia aims to build and deploy at least 10 gigawatts of AI data centers using Nvidia systems.
AMD's shares have surged by more than 27% in midday trading, reflecting the market's enthusiasm for the OpenAI deal. As OpenAI continues to make strides in AI development, its partnerships with AMD and Nvidia are set to drive innovation in the sector.
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