OpenAI has gained the option to acquire a 10% stake in AMD (approximately 160 million shares) through a warrant included in a multibillion-dollar partnership to deploy 6 gigawatts of AMD Instinct MI450 GPUs for AI compute, starting in H2 2026. Announced on October 6, 2025, the deal, which could generate “tens of billions” in annual revenue for AMD, sent the chipmaker’s shares surging over 30% in after-hours trading, adding roughly $80 billion to its market cap. For AI investors, semiconductor analysts, and tech strategists searching OpenAI AMD 10% stake, AMD Instinct MI450 deal, or OpenAI chip partnership 2025, the warrant vests based on deployment milestones (starting with 1GW in 2026) and AMD share price targets, with shares priced at $0.01 each. OpenAI CEO Sam Altman emphasized the deal’s role in scaling AI infrastructure, while AMD CFO Jean Hu projected transformative revenue, positioning AMD as a key challenger to Nvidia’s 80% AI GPU market share. The partnership, part of OpenAI’s broader compute strategy—including $300 billion from Oracle and $10 billion from Broadcom—underscores the AI industry’s escalating demand for high-performance chips.
Deal Terms: Equity and Compute Commitments
The agreement outlines a multi-year commitment for OpenAI to deploy 6 gigawatts of AMD Instinct GPUs, with the equity warrant tied to specific milestones.
- Equity Warrant: Up to 160 million AMD shares (10% of outstanding shares) at $0.01 each, vesting upon achieving deployment goals (1GW by H2 2026, scaling to 6GW) and share price thresholds.
- Compute Deployment: Begins with 1GW of Instinct MI450 GPUs in 2026, expanding to 6GW across multiple chip generations.
- Revenue Impact: AMD expects “tens of billions” annually, per CFO Jean Hu, with MI450 offering 2x performance over MI300X.
- Financial Backing: OpenAI’s $4.3 billion H1 2025 revenue and $500 billion valuation support the deal’s $2.5 billion H1 cash burn.
AMD EVP Forrest Norrod called it a “generational opportunity” for AI compute.
| Component | Details | Impact |
|---|---|---|
| Equity Stake | 160M Shares (10%) | Ties OpenAI to AMD’s Growth |
| Initial Deployment | 1GW MI450 GPUs (2026) | $10B+ Annual Revenue for AMD |
| Full Commitment | 6GW Over Years | Challenges Nvidia’s Dominance |
Market Reaction: AMD Shares Surge 30%
AMD’s stock (AMD) jumped over 30% in after-hours trading on October 6, 2025, closing up 23.71% at $152.34, adding approximately $80 billion to its market cap. The rally reflects confidence in AMD’s ability to capture AI market share, with analysts noting the MI450’s cost-performance edge over Nvidia’s H100 and upcoming H200 GPUs.
- Nvidia Comparison: Nvidia’s $100 billion investment in OpenAI for 10GW of GPUs dwarfs the AMD deal but highlights OpenAI’s multi-vendor strategy.
- Market Dynamics: AMD’s market cap neared $250 billion post-deal, closing the gap with Nvidia’s $3 trillion valuation.
Strategic Implications: Diversifying AI Compute
The partnership has far-reaching effects:
- OpenAI’s Strategy: Reduces Nvidia dependency (80% of current compute), mitigating supply risks and costs.
- AMD’s Ascent: Builds on MI300X success, targeting $50 billion in AI revenue by 2027.
- Industry Impact: Intensifies GPU competition, potentially lowering AI chip prices and accelerating innovation.
Altman: “This deal ensures the compute backbone for AI’s next leap.”
Conclusion: OpenAI’s Stake in AMD’s AI Future
OpenAI’s 10% stake option in AMD, tied to a 6GW GPU deal, is a strategic move to diversify its AI compute and bolster AMD’s challenge to Nvidia. With shares up 30%, it’s a market-shifting alliance. For AI infrastructure, it’s a power play—will AMD redefine the GPU race? The stakes compute. Bloomberg
