OpenAI: Mega Deal to Acquire Stake in AMD

AMD and OpenAI have reached a mega deal for the supply of Artificial Intelligence (AI) chips. AMD announced today that it will supply OpenAI with AI chips as part of a multi-year agreement that will generate tens of billions of dollars in revenue annually.

The agreement offers OpenAI the option to acquire a stake of up to approximately 10% in AMD, while also giving it the opportunity to acquire a stake in one of Nvidia's strongest competitors. AMD's stock rose more than 25% in pre-market trading.

The agreement covers the development of hundreds of thousands of AMD AI chips, equivalent to six gigawatts, over several years, starting in the second half of 2026. AMD executives expect the deal to generate tens of billions of dollars in annual revenue, with the company expecting over $100 billion in new revenue within four years.

OpenAI CEO Sam Altman said the deal with AMD will help OpenAI build enough AI infrastructure to meet its needs. In September, Nvidia announced an investment of up to $100 billion in OpenAI, while OpenAI and Microsoft signed a non-binding agreement to restructure OpenAI into a for-profit entity.